Page 4 - Credit Market

FinMin retains 6.5% FY24 growth estimate amid steady high-frequency indicators

The finance ministry on Friday exuded confidence that the country will achieve 6.5 per cent growth in FY24 on the back of improved corporate profitability, private capital formation and bank credit growth, notwithstanding the risks of rising crude oil prices and monsoon deficit. The ministry's August edition of Monthly Economic Review said the 7.8 per cent growth recorded in the first quarter (April-June) was on account of strong domestic demand, consumption and investment. The growth was also witnessed in various high-frequency indicators. Flagging certain risks like steadily climbing crude oil prices in the global market, impact of monsoon deficit in August on Kharif and Rabi crops, the review said, "that needs to be assessed." At the same time, it observed, the rains in September have erased a portion of the rainfall deficit at the end of August. Furthermore, the review said, a stock market correction, in the wake of an overdue global stock market correction, is an ever present .

Frictionless credit initiative slashes operational costs for lenders: RBI

The frictionless credit initiative being piloted by the Reserve Bank is helping lenders slash their customer acquisition cost by a whopping 70 per cent, while for borrowers the saving is 6 per cent of the loan amount, a senior central bank official has said. The pilot started with an all-digital KCC (kisan credit card) lending, developed by the RBI Innovation Hub on the public tech platform, in Tamil Nadu and Madhya Pradesh this April. The pilot has been extended to four more states -- Maharashtra, Uttar Pradesh, Karnataka, Gujarat (for dairy farmers) from August 17 this year. The pilot launch of the public tech platform for frictionless credit to farmers has helped reduce operational costs for lenders by more than 70 per cent, while for the farmer, the saving is 6 per cent of the loan amount, Ajay Kumar Choudhary, an executive director and head of the fintech department at the RBI, said here over the weekend while addressing the three-day global fintech festival. Moreover, there i

Deposit growth picked up pace, credit offtake moderated in August

The data for both credit and deposit excludes the impact of the merger of HDFC with HDFC Bank in July 2023

RBI open to consider securitisation in restricted classes: M. Rajeshwar Rao

For standard assets, the securitisation framework permits a diverse set of investors to subscribe to the securitisation notes of underlying loans

Frictionless credit helped cut operational cost to lenders: RBI's Choudhary

Speaking at the Global Fintech Fest 2023, Choudhary spoke of the importance of customer centricity and governance to ensure the sustainability of fintech entities

India on track to be global player due to financial regulations: Experts

India is on the path to become a solid global player due to robust financial regulations, financial experts, including RBI Deputy Governor M Rajeshwar Rao, have said. The RBI Deputy Governor said India was in a "sweet spot" to grow robustly, despite global turmoil and monsoon risks to growth, and to do so, developing credit markets was essential. Rao, and the other financial experts, expressed their views at IIM Kozhikode's 'First Annual Seminar on Banking Regulation, Intermediary Soundness and Systemic Stability' held on Monday, a release issued by the institute said. To address credit risks, Rao said financial intermediaries should consider credit risk as a core element in their strategies. He called for a framework based on five elements of Ms -- measuring, monitoring, managing, mitigating, and migrating, the release said. Rao said that for risk transfer or migration, the role of markets was extremely important as a deep and vibrant market to offload credit exposure could mitig

Unable to get a loan? Build a proper credit history with secured card

First-time borrowers should start a fixed deposit and get a credit card against it

Protean, PayNearby partner for providing credit services on ONDC network

Protean eGov Technologies and fintech platform PayNearby have collaborated for providing credit services on the ONDC network for last-mile borrowers and MSMEs. Once launched, the marketplace will also allow for easy discovery of various lending products at affordable pricing, according to a statement. "In this partnership, Protean will serve as an ONDC technology service provider that facilitates availability of credit for last-mile borrowers across the country through PayNearby's well entrenched Distribution as a Service (DaaS) network," it said. Speaking to PTI, Protean eGov Managing Director and CEO Suresh Sethi said there are several people who are not digitally enabled to even get into the account aggregator framework and get credit against their data, or consent for it to be used. "We are looking at this as a sort of intervention which can leverage the physical network provided by PayNearby and the last mile agent can then provide an assisted service and onboarding people to

Love travelling? The best credit cards for discounts, cashbacks and more

If you are a frequent traveller, be to for work or because you love vacations, there are credit cards designed exclusively for this purpose that come with several exciting features and rewards on ever

SMFG India Credit plans to double AUM to over Rs 70,000 cr in 3 years

Shantanu Mitra, its chief executive and managing director, said the company's AUM expanded by over 40 per cent Year-on-Year basis to Rs 36,613 crore at end of March 2023 (FY23)

Shapoorji Pallonji Group taps private credit market to raise $1.6 bn

The group has been seeking ways to free up cash as rising interest rates bite

Carlyle Group weighing entry into private credit market in India

Executives from the US private equity investor's Hong Kong office have visited India to understand the country's private lending opportunities in recent months

The big green reset: Major changes are afoot in the credit markets

As the transition to a low-carbon economy gathers pace

Credit market cracks widen as distressed debt nears $650 billion

Distressed debt in the US alone jumped more than 300 per cent in 12 months, high-yield issuance is much more challenging in Europe and leverage ratios have reached a record by some measures

Economic uptick boosts credit offtake beyond 20% in retail, services

The rise in credit was largely driven by housing and vehicle loans segments

Credit to industry up 12.6% YoY in September; touches 100-month high

Apart from base effect, credit to industry got a big boost from MSMEs; among sectors, petroleum, gems & jewellery, engineering, iron & steel, and construction were key drivers

Overall credit market grows 11.1% to Rs 174.3 trn in FY22: Report

Led by a 122 per cent spike in retail loan volume, the overall credit market grew 11.1 per cent in FY22 over the previous year to Rs 174.3 lakh crore, according to a credit bureau report. According to credit bureau CRIF High Mark, the total lending market stood at Rs 174.3 lakh crore as of March 2022, registering an 11.1 per cent growth over March 2021. Commercial, retail and microfinance lending portfolios contributed 49.5, 48.9, and 1.6 per cent, respectively to this growth. Giving a break-up, the report said personal loans saw a full 46 per cent growth in originations by value, and a much higher 122 per cent growth in originations by volume in FY22 over the previous year, and the sector is dominated by state-run and private banks along with non-banking entities. Led by private sector banks, credit cards saw a higher 48 per cent growth in new card originations and the share of the new card originations of private banks increased from 61.2 per cent in FY21 to 71.4 per cent in ...

Rs 7K-crore NPA sale to NARCL by Q4: IDBI Bank MD & CEO Rakesh Sharma

'We have identified accounts worth Rs 11,000 crore, of which Rs 4,000 crore is technically written off', said Sharma

Credit to industry hits 8-year high as corporations opt for bank funding

According to the latest Reserve Bank of India (RBI) data, loans to micro, small, medium, and large industries rose to Rs 31.82 trillion as of July end, up 10.5 per cent year-on-year (YoY).

Broad-based, double-digit annual growth seen in bank credit in Q1: RBI data

RBI data showed the metropolitan regions saw maximum acceleration with YoY credit growth vaulting from 2.7% in June 2021 to 13.2% in June 2022