Credit Risk

Outlook for debt funds improves, but avoid chasing long-duration gains

Keep the core allocation in short- to medium-duration funds; match fund maturity with financial goals

RBI finalises expected credit loss norms; rollout set for April 2027

The ECL framework is forward looking and asks banks to build buffers based on the likely losses an asset will incur

Investors ditch safe havens, turn to riskier debt on US-Iran truce hopes

Investors have also been snatching up junk bonds, although with a preference for the higher-rated end of the spectrum, implying that money managers still see risk ahead

Corporates return to loans; wholesale credit rises for private banks in Q3

Corporate borrowers are returning to bank loans as pricing gaps with bonds narrow, driving strong wholesale credit growth for private banks in Q3 FY26

Transitioning to ECL framework: A move towards expected loss-based norms

The forward-looking ECL-based allowance (or provision) is applied at origination and for all subsequent reporting periods to financial assets till derecognition

Banks get 4 years to spread provisions for ECL norms, MSME relief ahead

Moreover, the regulator proposed tweaking risk weights for loan to MSME and residential housing loans, which will release capital for banks

India Ratings downgrades Spandana Sphoorty's debentures, loans to BBB+

Profitability under pressure due to high credit costs

Credit report: Check quarterly to spot repayment lapses, errors, and fraud

In case of inaccuracies and fraud, report both to the lender and credit bureaus

RBI moots revision in capital charge norms for counterparty credit risks

The revision pertaining to CCR is proposed to largely align with the Basel Committee on Banking Supervision (BCBS) guidelines, reflecting the development and depth of the respective market segments

UCBs see growth in outstanding credit portfolio due to demand, wider reach

Retail credit products have witnessed highest growth in last five years compared to commercial credit

MSMEs struggle with access to formal credit due to limited formalisation

Other factors such as information asymmetry, lack of comprehensive financial records, weak credit histories, and insufficient collateral contribute to this issue

Credit card spends surged to 4-month high of Rs 2 trillion in March

Card addition slows in FY25 following higher risk weight norm

IMF asks Indian banks to adopt global norms for credit risk management

UN financial agency report released by RBI calls for enhanced supervision of individual loans

Leap Finance secures $100 mn debt facility from HSBC to help int'l students

Lack of affordable and flexible financing is one of the biggest challenges faced by many high-quality students in their pursuit of a global education

NIIF plans to raise $2 billion private credit fund, India's largest so far

The fund will focus on performing credit, aiming to channel international capital into the Indian economy

CGTMSE achieves milestone of approving 10 million guarantee to MSMEs

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on Tuesday said it has achieved a milestone of approving 1 crore guarantees to MSE beneficiaries. CGTMSE was set up by the central government and SIDBI in August 2000 to provide credit guarantees to micro and small enterprises, enabling them to access credit without the need for collateral and third-party guarantees. To mark the occasion, an event was organised, and attended by CGTMSE chairman Manoj Mittal and CEO Manish Sinha and representatives of various banks, including State Bank of India, HDFC Bank and Union Bank, and MSMEs. During the occasion, three Micro and Small Enterprises (MSE) borrowers and three prominent Member Lending Institutions (MLIs) were felicitated which have played a significant role in this achievement, CGTMSE said in a statement. Speaking at the event, Mittal emphasised the transformative impact of credit guarantees on the MSE ecosystem, enabling businesses to access funding without .

Fintech firms embrace AI for credit, payments, customer insights, more

AI models help financial institutions in understanding delinquencies and speed up disbursements

MFI lenders turn cautious, loan portfolio declines as delinquencies rise

Overleveraging by customers is a pain point in the industry, said a regulatory report in FY23

RBI report: Gap in credit, deposit growth shrinking but challenges remain

With inflation easing household consumption to growth faster in Q2

India's credit self-monitoring grows by 51%: TransUnion CIBIL report

Notably, 81 per cent of consumers from non-metro regions began monitoring their credit within six months of their first credit product