Credit Risk

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

RBI expected to finalise guidelines on project loans in 2-3 months

The final project loan guidelines are likely to be announced in the next two to three months, a senior RBI official said on Thursday. The norms regarding the Expected Credit Loss (ECL)-based provisioning are in an advanced stage of discussion, the official told reporters here. The Reserve Bank of India has proposed to set aside 5 per cent of the total exposure to a project till the construction of the project is on. Fearing a hit to profits, banks have been asking for a relook into it, as per reports. The RBI official said up to 60 responses have been received on the project loans draft, and the central bank is going through all the suggestions. When asked about the timelines by when the final guidelines will come in, the official said it will take "at least 2-3 months", but did not give a specific answer on whether the guidelines will be implemented from April 1 next year onwards. To a question on the ECL framework, the official said the norms are in the "advance stages" of ...

RBI clears Tata Capital's conversion into NBFC investment credit company

The appointed date for the scheme is effective April 1 this year and is expected to take 9-12 months to consummate

Credit transactions on UPI reaching Rs 10K cr every month: NPCI chief

NPCI's "credit line on UPI", launched last year, offers low-ticket, high-volume retail loans to individuals and businesses

Water stress can take a toll on India's sovereign credit strength: Moody's

The report comes at a time when several cities in India, including the national capital Delhi, have been facing an acute water shortage