Earlier, the Industry segment had a contribution of 27 per cent in bank credit, which was nearly equal to services and personal loans. The decline can be attributed to increased borrowings by manufacturing firms as the industry recorded a lower than expected rate in comparison to the bank credit.
BoB Cards had 1.57 million credit cards in circulation at the end of October, trailing bigger peers such as HDFC Bank (16.54 million), ICICI (13.53 million) and SBI Card (15.16 million), central bank data showed.
On a year-on-year (y-o-y) basis, non-food bank credit rose 18.3 per cent in October 2022 as compared with 6.9 per cent a year ago, according to the latest data on sectoral deployment of bank credit. An analysis of absolute growth credit between October 2021 and October 2022 indicates that four segments, NBFCs, large corporates, trade and home loans together account for 51 percent or Rs 95.5 lakh crore of the total Rs 18.8 lakh crores lent by banks during the period.
With a sharp rise in loan demand in the hinterland, Save plans to use the funds to expand its own lending operation to micro, small and medium enterprises (MSME)and to micro loan borrowers. The company is looking to raise more than Rs 300 crore - to fund its lending business, managing director Ajeet Kumar Singh told ET. “A new investor will come on board,” he said.
"There are more tailwinds than headwinds," Crisil senior director Krishnan Sitaraman said. He said that stronger balance sheets with higher capitalisation and higher provision buffers, along with receding asset-quality concerns have put NBFCs on a solid foundation to capitalise on credit demand.
Systematic Investment Plan, abbreviated as SIP, is an easy and hassle free way to invest in mutual funds these days. The term SIP has become so synonymous with mutual fund investments these days that a lot of investors feel SIP and mutual funds are the same.
In terms of total credit cards, HDFC Bank continued to remain the market leader with 16.5 million credit cards, followed by SBI Cards at 15.1 million. ICICI Bank, at 13.5 million, and Axis Bank, at more than 9 million, are other major players in this segment.
According to the Insolvency and Bankruptcy Board of India (IBBI), 23,417 applications for initiation of the Corporate Insolvency Resolution Process (CIRP), having underlying default of ₹7.31 lakh crore, were resolved even before their admission, as on September 31.
Gen Z borrowers monitoring their credit grew by 2.9 times in between October 2021 and September 2022, compared to overall growth of 1.8 times of the entire self-monitoring base.
The rating agency said that distress among retail borrowers since the outbreak of COVID-19 pandemic has led to an increase in the non-performing loans (NPLs) within the banking sector, which has led to an increase in the retail NPL portfolios of ARCs. The composition of asset class in the retail security receipts (SRs) issued by asset reconstruction companies (ARCs) has changed with unsecured personal and vehicles loans dominating the issuances in 2022
The Government of India amended the Income-tax Act, 1961, to tax and regulated the incomes and profits under from various virtual digital assets. These digital assets have been defined in exhaustive manner i.e., crypto assets, NFTs or any other token of similar type. In June 2022, the government issued a notification clarifying what is considered as NFTs and what are not.
Gold loan is a high-yielding business with several banks and non-banks charging interest rates upwards of 10-15%. For banks, this is increasingly becoming a lucrative segment as cost of funds is around 7% and returns are higher.
The Ahmedabad NCLT is scheduled to hear the matter on a resolution plan on December 7, according to the tribunal's website. Several issues are being heard at the tribunal, potentially delaying the resolution. Axis Bank has filed a petition with the tribunal opposing the distribution of the proceeds from the winning resolution applicant. Axis Bank was the only bank that voted against the resolution plan.
Much has been said about India’s love for fixed deposits. They have stood the test of time, remaining the preferred ‘park it and leave it’ option for surplus cash. Now, it seems like a combination of global and domestic macroeconomic factors is fanning the winds of change among Indian investors.
Tax planning is as essential as financial planning. Those looking to save tax by investing in Long Term Equity Fund, they can consider starting a monthly SIP in this tax saver fund.
Large-cap equity mutual fund schemes can be considered by those who are looking to earn stable returns with minimum investment risk
This application can be made by any person, corporate, HUF, individual, etc. An individual may also submit a self declaration in Form 15G or Form 15H for non-deduction of TDS.
In October, the government had invited expressions of interest (EoI) for a stake sale, along with the transfer of management control in IDBI Bank. The government, along with the Life Insurance Corporation (LIC), will sell 60.72% stake in the lender.
The government and LIC together hold 94.72 per cent stake in IDBI Bank. The successful bidder would be required to make an open offer for acquisition of 5.28 per cent public shareholding. Pursuant to the transaction, the government will own 15 per cent stake and LIC 19 per cent shareholding in IDBI Bank, taking their total holding to 34 per cent.
Japan's Nippon Life, which holds 49 per cent stake in RNLIC, is opposed to the entry of Aditya Birla Sun Life in the race to acquire Reliance Capital's stake in RNLIC. The visit coincides with the deadline for submitting the final binding bids for Reliance Capital and its subsidiaries, including RNLIC
"In the recent quarterly results, the bank's profits are the highest ever. SBI crossed the highest ever profits recorded by any corporate and analysts and broking houses are praising this," Khara said.
Chhattisgarh chief minister Bhupesh Baghel asked the Centre to release funds for implementing the old pension scheme for state government employees. He also demanded an increase in royalty for minerals extracted in the state and that different royalties be fixed on different grades of coal and iron ore. Tamil Nadu finance minister P Thiaga Rajan said states cutting across party lines said that centrally sponsored schemes are constraining states' fiscal autonomy since in some schemes states end up contributing large amounts which are more than the Centre's contribution.
The Insurance Regulatory and Development Authority of India (IRDAI) has also approved a proposal to permit Private Equity (PE) funds to invest directly in insurance companies and at its board meeting today allowed subsidiary companies to be promoters of insurance companies.
A Systematic Investment Plan is an investment tool where ESG investors can invest small fixed amounts at regular intervals over the course of a stipulated time period.
“On cost of funds the level of impact depends on the extent to which the borrowings are replaced by term deposits,” said Pranav Gundlapalle, senior research analyst, Bernstein. The cost of the liabilities used to replace HDFC Limited's borrowings — would drive a slightly lower cost of borrowings versus while replacing borrowings with term deposits will further lower the cost of funds.
Financial independence is having enough savings, investments, and funds to be able to afford the life you want without any worry.
Bharucha is a career banker with more than 35 years of experience and has been associated with the bank since 1995. In his current position as executive director, he is responsible for wholesale banking covering areas of corporate banking, PSUs, capital & commodities markets, financial institutions, custody, mutual funds, global capability centre & financial sponsors coverage, and banks coverage.
A five-member Constitution bench comprising justices Abdul S Nazeer, BR Gavai, AS Bopanna, V Ramasubramanian and BV Nagarathna had on October 12 directed the Centre and RBI to file comprehensive affidavits. Defending the move, the Centre in its affidavit last week had told SC that demonetisation was a well-considered decision and part of a drive to eradicate black money.
Top bankers say that cash withdrawal from ATMs slowed down in major cities, as payments through UPI (united payments interface) have clearly taken over. However, ATMs are still very relevant for cash customers in India, especially in the tier-2 to tier-6 towns.
With this Canara Bank now offers an API based digital workflow of Bank guarantees which will eliminate physical issuance, stamping, verification and paper-based record maintenance of Bank Guarantees paving the way to augment integration of Environmental and Social Governance (ESG) framework into Business.
The draft IRDAI (Expenses of Management of Insurers Transacting General or Health Insurance Business) Regulations, 2022, has proposed the insertion of a single limit of 'Expenses of Management' and additional allowances towards the rural sector and government welfare-oriented schemes; also for expenses towards 'insurtech' and 'insurance awareness'.
After announcing results for the June-September quarter earlier this month, the bank said it expects credit growth of 14%-16% for the current financial year as it steps up efforts to attract deposits.
Improving underwriting standards of banks together with a reduction in corporate leverage and better quality of information including data analytics hold banks in good stead as they play a supporting role in making India a $40 trillion economy, Khara said at the SBI Banking & Economics Conclave.
The boards of individual banks can decide on waiving the penalty on accounts, which do not maintain a minimum balance, Union Minister of State for Finance Bhagwant Kishanrao Karad on Wednesday said.
"The General and Health Insurers offering health insurance policies can also consider leveraging on the Health Professional Registry for building up the network of doctors/physicians or other healthcare professionals for providing OPD or other healthcare services," Irdai said in a circular.
We hear about kids these days who come as brilliant examples of what we could have achieved at that age if we knew the idea of growing money! We sometimes even regret not having enough financial knowledge.
The Indian capital markets regulator has made it unambiguously clear that funds have to close and liquidate within the specified period even if a predominant number of investors who have contributed to a fund pool give their consent to extend the tenure of the fund.
Loan against Deposits is a loan in foreign currency against a deposit in India (including Rupee NRE FDs). The customers can avail LAD for their short-term cash requirement without having to prematurely close their term Deposits and thereby avoid paying a penalty for breaking the deposit. They can avail loans up to 95% of their deposit value.
Ujjivan Small Finance Bank has also raised deposit rate on some buckets in sync with the evolving macro-economic trend. With tightening liquidity and growth in demand for loans, the scramble for deposits may become more intense.
After initially testing the waters with lending for 589 EV purchases and a book size of ₹5,100 crore, the bank aims to triple the book size by 2025.
The appellate tribunal will hear the matter further on December 7. Before the appellate tribunal's order, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted the company under CIRP on November 11, and had appointed Ashutosh Agarwala as the interim resolution professional (IRP) of the company.
Shriram Housing Finance, a subsidiary of Shriram City Union Finance, is actively pursuing a smaller lender in the affordable housing space for acquisition and merger while valuation mismatch may pose a hurdle to the scheme of things. Talks are on, said managing director Ravi Subramanian.
"Hiding behind lack of data is not an excuse. There is no reason why the Indian financial system cannot collaborate together on climate risk and measuring financed emissions," Parekh said Monday. Addressing the 21st World Congress of Accountants held in Mumbai, the veteran finance professional said that it would be easier and more economical to collaborate together on sustainability initiatives
The Reserve Bank of India (RBI) on Monday allowed HDFC Bank Ltd and Canara Bank Ltd to open a special "vostro account" for trade in Rupees with Russia, according to media reports. Vostro accounts are accounts a bank holds on behalf of another, often foreign bank, and this forms a key part of correspondent banking.
Private investment in India was constrained for years by heavy indebtedness of companies and banks and by weak demand. But over the past two years, corporations and lenders have cut costs and raised equity capital, and companies have been able to spend on new capacity as demand has strengthened.
The ARC had approached the Mumbai bench of the National Company Law Tribunal (NCLT) against the over seven-decade-old textile maker and leader in the school uniform fabric segment, after it defaulted on dues of more than Rs 414 crore.