Page 5 - Bank Loans

Bank lending to private corporate rises 14.9% in Sep 2023: RBI data

Bank lending to the private corporate sector grew 14.9 per cent in September 2023 from 14.7 per cent a year ago, according to the Reserve Bank data released Friday. Another set of banking data released by the central bank showed the share of term deposits bearing a 6 to 8 per cent interest rate rose to 78.6 per cent in September 2023 against 12.5 per cent in March 2022. According to data on outstanding credit of banks at September-end 2023, loans to industry accounted for nearly one-fourth of total bank credit; they increased by 8.6 per cent (year-on-year) in September 2023 (against 12.3 per cent a year ago); working capital loans growth has remained in double digits for the last six quarters. "Bank lending to the private corporate sector recorded robust growth and accelerated to 14.9 per cent (year-on-year) in September 2023 from 11.5 per cent a quarter ago and 14.7 per cent a year ago," the RBI said. The share of personal loans in bank credit has successively increased to over 30

China weighs unprecedented builder support with first-ever unsecured loans

Implementation would require regulators to exempt bankers from being held accountable for possible bad loans given the high risks involved

Bank of Maharashtra top among PSU lenders in loan, deposit growth in Q2

State-owned Bank of Maharashtra (BoM) retained the top spot among public sector lenders in loan and deposit growth in percentage terms during the second quarter of the current financial year. The deposit and advances of the Pune-based lender posted an over 20 per cent rise, the highest by any public sector bank during the July-September period. With a growth rate of 23.55 per cent, gross domestic advances of the bank rose to Rs 1,83,122 crore at the end of September 2023, according to published quarterly numbers of public sector banks (PSBs). It was followed by Indian Overseas Bank with 20.29 per cent growth, Central Bank of India (17.26 per cent growth) and UCO Bank with 16.53 per cent growth. The country's largest lender State Bank of India (SBI) stood at the seventh spot with 13.21 per cent rise in domestic advances growth. However, SBI's total loans were about 16 times higher at Rs 28,84,007 crore as compared to Rs 1,75,676 crore of BoM in absolute terms. With regard to depos

How to loot the public sector banks

Banker-borrower collusion has led to a surge in IBC cases, with pre-planned fraud that results in minimal realisable value

Govt considering $7.2 billion housing loan interest subsidy scheme

The scheme will offer an annual interest subsidy of between 3-6.5% on up to 0.9 million rupees of the loan amount

Nearly 34% loans charged 10% or more interest rate, shows RBI data

The share of bank loans with interest rates of 10 per cent or higher rose from 22 per cent to 34 per cent during this period

42% faced with higher EMIs, 74% see loans become more expensive: Survey

42% have seen their EMIs go up and 21% have seen both EMI and tenor increase, according to a survey by Bankbazaar.com Of these, 76% have seen their interest rate increase by more than 1%

CreditAccess Grameen expects around 25% growth on loan sales in FY24

The largest microfinance lender CreditAccess Grameen is expecting around 25 per cent on-year growth in loan sales, taking the overall assets to around Rs 27,000 crore this fiscal. The company closed FY2022-23 with a loan book of Rs 21,000 crore and a net income of Rs 830 crore, which it expects to jump 75 per cent on year to Rs 1,300-1,400 crore this fiscal, as it expects the margin to continue to firm at the current level of 10-12.5 per cent, the microlender's managing director Udaya Kumar Hebbar told PTI on Tuesday. In the June quarter, it booked 151.5 per cent growth in net income at Rs 348 crore on lower provisioning as the asset quality improved. Overall loan book of the Bengaluru-based lender grew 39.7 per cent to Rs 21,814 crore from Rs 15,615 crore a year ago and Rs 21,000 crore in March 2023. Total income rose 53.9 per cent to Rs 1,170.7 crore, and the key net interest income rose 65.4 per cent to Rs 763.3 crore. CreditAccess Grameen started off as an NGO, T Muniswamappa .

'No further interest on penal charges': RBI issues new guidelines for loans

RBI's new instructions on penal charges on loans shall come into effect from January 1, 2024

Banks' lending to NBFCs soars 35% to Rs 14.2 trn in June: Care ratings

Banks' lending to non-banking finance companies (NBFCs) rose by 35.1 per cent to Rs 14.2 lakh crore in June, a report said. Credit exposure of banks to NBFCs rose by a robust 35.1 per cent on-year to Rs 14.2 lakh crore in June, indicating non-banking finance firms' decreased reliance on international borrowings. This also pushed up NBFCs' share in overall credit from 8.5 per cent in June 2022 to 9.9 per cent in the reporting month, according to Sanjay Agarwal, a senior director with Care Ratings. However, the report noted that the merger of HDFC with HDFC Bank, effective July 1, will lead to a reduction in the share and also the exposure of banks to NBFCs, as HDFC's bank borrowings will undergo a temporary reclassification, resulting in a shift of exposure to HDFC Bank. Meanwhile, mutual funds' debt exposure to NBFCs, including through commercial papers (CPs) and corporate debt, also increased 14.5 per cent to Rs 1.62 lakh crore in June, it said. According to the report, MF exposur

Kerala to bear 50% interest on capital loans by cashew cos: Minister Rajeev

The Kerala government on Wednesday decided to bear a portion of the PF and ESI payments of the private cashew companies in an effort to revive the crisis-hit industry in the southern state. State Industries Minister P Rajeev while launching eight new value-added cashew products by the Kerala State Cashew Development Corporation (KSCDC) for the Onam market here, said the government has also decided to bear 50 per cent of the loan interest burden of these factories and has reached a settlement with the banks to write off all interest and compound interest on Non-Performing Assets of cashew factories. "Now the government has intervened with the banks, and the banks are now ready to write off the penal interest and the accumulated interest, and they are ready to settle these NPAs by settling 50 per cent of the amount of the loan up to Rs 2 crore and 60 per cent of the principal amount up to Rs 10 crore," Rajeev told PTI. He said the Kerala cashews produced by the KSCDC and Kerala State

'Bad bank' sees loan transfers dwindle on valuation, liability woes: Report

NARCL, which started in July 2021 to buy 2 trillion rupees in bad loans, has bought 213.5 billion rupees of such loans as of July 17, according to a government statement to parliament

RBI deputy Guv asks banks to double down on recovery efforts, limit losses

Reserve Bank Deputy Governor Swaminathan J on Thursday asked banks to double down on recovery efforts to limit the losses from the write-off of loans, saying it will help them post higher profits. The career commercial banker who recently joined the regulator also added that a bank's ability to recover or a borrower's liability to repay does not diminish with a loan write-off and recoveries can help a lender post higher profits. Earlier this week, the government informed Parliament that over Rs 14.56 lakh crore of advances were written-off by banks since FY15. "We would like the banks to redouble their efforts because these are accounts that are parked in a special account and we would like to see more and more recoveries," Swaminathan told reporters at the central bank headquarters here. Stating that there is a need to get the "context right" in this matter, he offered some nuances and stressed that there is a need to be "guarded" in "passing judgements". The DG said an NPA accou

UGRO Capital profit rises 245% in Q1 helped by robust loan disbursement

DataTech lending platform UGRO Capital on Wednesday said its profit after tax rose 245 per cent to Rs 25.2 crore in the April-June quarter, helped by robust loan disbursement. The non-banking finance company, which focuses on borrowers from the micro, small and medium enterprises (MSME) segment, had reported a Profit After Tax (PAT) of Rs 7.3 crore in the year-ago period. "The company's investment in distribution channel, large lender base and data driven underwriting model has stabilised monthly AUM increase of Rs 500-plus crore per month," UGRO Capital said in a release. The company's Asset Under Management (AUM) surged to Rs 6,777 crore as on June 2023, up 85 per cent from the year-ago period. The disbursement rose by 50 per cent to Rs 2,036 crore during the reporting quarter, which also improved the net income to Rs 125.6 crore. Its total income stood at Rs 218.3 crore in the first quarter of FY24, up 79 per cent year-on-year, while Gross Non-Performing Assets (GNPA) stood at

Top headlines: India ripe for semiconductor boom, banks' loans, and more

Business Standard brings you the top headlines at this hour

Govt instructed banks not to take harsh action against borrowers: FM

Union Finance Minister Nirmala Sitharaman on Monday said both public and private banks have been instructed that harsh steps should not be taken when it comes to the process of loan repayment and that they should handle such cases with sensitivity. Sitharaman said this while making an intervention during the Question Hour in the Lok Sabha on a question related to repayment of loans taken by small borrowers. "I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment and they should approach the matter with humanity and sensitivity in mind," she said.

Sitharaman's Move: The End of Ruthless Loan Recovery?

Union finance minister Nirmala Sitharaman on July 24 told Parliament that the government has instructed all banks, both public and private, to not take harsh steps when it comes to processing of loan

RBL Q1 net profit up 43% to Rs 288 cr; aims to reduce unsecured loans share

Private sector lender RBL Bank on Saturday reported a 43 per cent jump in its June quarter net profit at Rs 288 crore, helped by core income growth. The city-based lender reported a 21 per cent jump in the core net interest income at Rs 1,246 crore on the back of a 21 per cent growth in advances and a 0.48 per cent expansion in net interest margin (NIM) to 4.84 per cent. The other income grew 12 per cent to Rs 685 crore. The bank is aiming to expand the NIMs further to 5 per cent going forward on the back of a better product mix, its managing director and chief executive R Subramaniakumar said. Its retail loans grew by 34 per cent, with newer products like mortgages experiencing the maximum growth. Subramaniakumar said the share of unsecured assets presently stands at 43 per cent, and the bank is targeting to decrease this by 2 percentage points by the end of the fiscal, as the share of secured retail finances, including home loans, two-wheeler loans and auto loans, grows. At the

Yes Bank's loan book grows 7.5% to Rs 2 trn in quarter ending June

It deposits grew 13.5 per cent YoY to Rs 2.19 trillion at end of June 2023

Bank of Maharashtra clocks credit growth of 25% at Rs 1.75 trn in June

State-owned Bank of Maharashtra (BoM) on Monday said it has posted a credit growth of 24.93 per cent at Rs 1.75 lakh crore in the June quarter. The outstanding credit was Rs 1.40 lakh crore at the end of June 30, 2022, BoM said in a regulatory filing. The Pune-headquartered lender registered a 24.82 per cent growth in total business (total advances and total deposits) to Rs 4.19 lakh crore at the end of June 2023 as against Rs 3.36 lakh crore at the end of the same quarter of previous fiscal. Total deposits of the bank increased by 24.73 per cent to Rs 2.44 lakh crore as against Rs 1.95 lakh crore at the end of the first quarter of the previous financial year. During the quarter, it said, the Current Account and Savings Account (CASA) ratio stood at 50.97 per cent of the total deposits. With regard to Credit Deposit (CD) ratio, it said, the number has increased to 71.86 per cent at the end of June 30, 2023 as against 71.75 per cent in the year-ago period. Gross investment of the