Page 3 - Credit Market

The pros and cons of digital loan apps

Are the borrowers getting into a debt trap, without understanding the risks? Digital lending is still a grey area

RBI pulls up credit information bureaus on rising customer complaints

The CICs shared their feedback and highlighted the initiatives that are being taken in collaborating with the credit institutions (CIs) for enhancing data quality

Awaiting clearance on PA license, fintechs diversify into credit offerings

Meanwhile, other payment majors awaiting a decision expect to receive a nod in the first half of the next year

PhonePe launches section to help customers with credit score, bills

Fintech company says service will help users in understanding their credit health

BoJ keeps negative interest rate unchanged, says watching wage trends

The Bank of Japan kept its longstanding easy credit policy unchanged on Tuesday, saying it will watch price and wage trends before raising its negative benchmark interest rate. The BOJ policy decision was widely expected. But investors and analysts believe the central bank is tip-toeing toward a shift due to price increases that have left inflation above its 2% target. The U.S. dollar gained against the Japanese yen and stock prices surged after Tuesday's decision. The benchmark rate of negative 0.1% is meant to encourage banks to lend more and businesses and consumers to borrow more to spur the economy, the world's third-largest. The central bank also has purchased trillions of dollars worth of government bonds and other assets as part of its strategy of injecting more cash to spur growth as the Japanese population shrinks and grows older. Inflation has risen in Japan but at a much slower pace than in the U.S. and other major economies, most recently at about 3%. At the same time,

Goldman Sachs ramps up credit business in India, targets rich diaspora

Goldman joins Wall Street lenders and private equity giants chasing opportunities in an economy that is forecast to grow 7% in the year ending March

Vedanta Resources prioritising private credit facility, says S&P Global

Analysts with S&P on the call noted that the liability management exercise is not as straightforward as seen in this region or globally

Are you facing short-term credit issues? Opt for a secured credit card

Invest in liquid and short-duration funds to finance short-term spending goals

Higher credit demand likely to lead to further upsides for banks

The RBI's increased risk weightage will hit growth in personal loans, credit cards and NBFCs

Credit metrics of India Inc may improve to 4.5-5 times in Q3 FY24: ICRA

India Inc's credit metrics are likely to show slight sequential improvement in the third quarter of the current fiscal, with interest coverage increasing to 4.5-5 times, rating agency Icra said on Friday. This would benefit from improved earnings of corporate India on the back of continuing, albeit moderating, tailwinds from commodity prices and seasonally strong demand during the recently concluded festive season, it said in a release. Icra's analysis of the second quarter of 2023-24 performance of 601 listed companies (excluding financial sector entities) revealed improved operating profit margins (OPM), increasing by 398 bps and 64 bps on a year-on-year and sequential basis, respectively, it said. This was primarily aided by softening in commodity prices. However, while the input costs softened in recent months, they remain elevated compared to the historic levels, and accordingly, India Inc's OPM is yet to revive to its historic highs, the agency said. "The 1.6 per cent ...

Private equity company True North enters the private credit segment

True North's 'Performing Credit Regular Income Fund' bridges the supply-demand gaps with custom solutions for middle-market companies

Transmission remains incomplete amid calibrated liquidity management: RBI

However, the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, the report said

Unsecured retail loans burgeoned on banks' books in Covid-19's aftermath

In services, commercial realty offtake showed a rising offtake with 8.6 per cent YTD growth in H1FY24. Transport operators saw the same with 8.9 per cent YTD growth

CICs to pay Rs 100 per day to customers for credit info updation delay: RBI

Credit information companies (CICs) will have to pay a compensation of Rs 100 per day to customers for delays in updation or rectification of their credit information, the Reserve Bank said on Thursday. Credit institutions (CIs) and credit information companies (CICs) have been given six months to put in place the necessary systems and processes to implement the 'Framework for compensation to customers for delayed updation/rectification of credit information'. In a circular, the Reserve Bank directed CICs and CIs to implement the compensation framework for delayed updation/rectification of credit information. "Complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of thirty (30) calendar days from the date of the initial filing of the complaint by the complainant with a CI/ CIC," it said. The circular further said the complainant can approach the RBI Ombudsman in case of wrongful denial of compensation by

Digital credit will add 1-2% to India's growth: Vaishnaw to Google team

Digital credit in India is going to become bigger than the digital payment system and will add 1-2 per cent growth to the country's economy, Union Minister Ashwini Vaishnaw said in an online video. The video reel uploaded on YouTube shows Vaishnaw in conversation with the Google leadership team, including Google Senior Vice President for Devices and Services Rick Osterloh. During the conversation, Vaishnaw while talking about Svanidhi Scheme said that Prime Minister Narendra Modi's work has been focused towards benefitting people at the bottom of the pyramid. "Digital credit is going to be bigger than digital payments because there is so much entrepreneurial energy out there in the country and the access to credit is what was holding it back. Once you have easy access to credit at a basically competitive rate, I can tell you this country will have 1-2 percentage points of additional growth because of digital credits," the minister said. He was speaking to the Google leadership on t

Banks disburse Rs 1,400 cr of loans under frictionless credit platform: RBI

Banks have disbursed over Rs 1,400 crore in loans under the 'frictionless credit' platform since its launch on August 17, a senior Reserve Bank official said on Thursday. Speaking on the sidelines of an Assocham event, Ajay Kumar Choudhary, an executive director at the central bank, said around 20,000 central bank digital currency transactions are taking place on a daily basis right now. The RBI launched the new approach earlier this year under which lenders will be able to disburse retail loans like the ones to agriculturists in a matter of minutes, using an analytics engine that aggregates borrower details from multiple sources, including bank details and land records, to take a call on loan proposal. "70,000 loans and more than Rs 1,400 crore of loans have been disbursed since August 17," Choudhary said, adding that the volumes are not important, at present, when the project is being piloted. He, however, said there are great prospects for the scheme in the future, and added tha

UBS Securities red flags retail loans, sees credit cost rise up to 200 bps

Banks for many years have been riding on the retail book as corporate demand still remains anemic

CBI files fresh case against former PEC chief in Rs 194 cr cheating case

The CBI has filed a fresh case against former chairman and managing director of PEC Arun Kumar Mirchandani and other former officials for allegedly causing a loss of Rs 194.61 crore to the public sector company, officials said on Monday. The CBI has filed multiple cases against Mirchandani and former officials of the PEC, a government enterprise under the Ministry of Commerce that facilitates import and export of commodities and grants financial assistance to importers. In the present case, it has been alleged that Morena-based KS Oils availed financial assistance from PEC Ltd for the import of crude edible oil under the foreign letter of credit (FLC) process entering into associateship agreements. KS Oils had secured the financing aid through seven letters of credit established in 2012-13, for which it submitted post-dated cheques (PDCs) as security. Letters of credit (LC) are a guarantee that a bank gives on behalf of its customer to honour the payment commitment. PEC took the ..

Banks to report healthy bottom line on high credit growth, low credit costs

NII, a key earning source for lenders, may show higher growth in private banks (24.4 per cent Y-o-Y) compared to public sector banks (12.1 per cent Y-o-Y) in Q2FY24

Credit to retail sector dips to 18.3% in August 2023, shows RBI data

Picks up speed in lending to agri, services