Page 2 - Credit Risk

Credit offtake stays robust at nearly 16% in May, shows RBI data

The deposit mobilisation also saw an uptick at 13 per cent Y-o-Y growth against the 10.4 per cent on May 5, 2023, according to Reserve Bank of India (RBI) data

Research reports on China's bad lending data disappear on social media

At least seven research reports from mainland brokerages and securities firms that had been posted to WeChat by analysts were unavailable for viewing

47% of Indian women face challenges in getting credit: Tide report

The report further claimed that the 95 per cent of women said that they are unaware of existing government financial schemes or initiatives to leverage for their business

Amid varied risk levels, review portfolio before choosing credit risk fund

Only investors with high risk appetite should opt for them; limit allocation to 5-10%

P2P lending is risky; investors must diversify their borrower profiles

Lenders get the benefit of monthly cash flows and control, but they must avoid platforms promising high returns

UdaanCapital disburses Rs 170 cr to Saint Gobain's distribution network

"We believe in forging strong partnerships to advance our goal of building next-generation working capital products for India's trade," said Chaitanya Adapa, Head of UdaanCapital

Retail credit flows surge not resulted in stress build up: RBI report

The Indian economy was witnessing a surge in retail credit growth. The credit growth is led by a well-diversified customer base, with reasonably good financial health conditions

RBI governor Shaktikanta Das cautions against exuberance in lending

Das said the central bank had not mandated any number on credit deposit ratio, and neither do they propose to

China's top banks tighten exposure to smaller peers to curb credit risk

The two state-owned banks have decided to reduce interbank lending limits and set shorter maturity periods for smaller peers deemed high risk, said two of the sources

IBC recoveries declining, resolution timelines getting prolonged: Crisil

Introduction of a focused bankruptcy law has helped improve the credit culture in India, but the last few years have seen a decline in recoveries and the resolution timelines getting prolonged, Crisil Ratings on Friday. In a note to observe the seven years of the Insolvency and Bankruptcy Code (IBC), the rating agency said the recovery rates have fallen to 32 per cent in September 2023, from 43 per cent in March 2019. At the same time, the average resolution time has increased from 324 days to 653 days, versus the stipulated 330 days, it said. The IBC has helped in resolving debt worth Rs 3.16 lakh crore stuck in 808 cases in the past seven years, the leading credit rating agency said. Its senior director Mohit Makhija said the IBC is "the most potent code" in India's corporate loan history, which has brought a "behavioural change" in borrowers. "The fear of losing companies has led to over Rs 9 lakh crore of filed debt being settled before the cases arrived at the IBC doorstep fo

Private credit: The rise of a diverse capital solution

Private credit has the potential to serve a larger market need, supplant traditional and alternative pools of capital

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

Credit formalisation, state welfare transforming labour markets: SBI report

Self-employment has improved as government programmes take care of primary subsistence needs, it says

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

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 ..

No signs of systemic risk build-up in bank credit: RBI's Michael Patra

The deputy governor also said that the ongoing surge in bank credit expansion is primarily driven by retail loans

Morgan Stanley sees tipping point in carbon credits as prices sink

The voluntary carbon market (VCM) has been gripped by a steady stream of scandals, leading to wild price swings and even collapsing valuations

PSB Alliance enters supply chain financing, ties up with Veefin Solutions

The PSB Alliance, an entity floated by 12 public sector banks in 2022, is entering the supply chain financing to primarily help small businesses, and aims to tap 5 per cent of the total credit market. The overall bank credit rose 14.5 per cent on-year in the week ending July 28 to Rs 148.2 lakh crore. Of this, pure-play supply chain finance from banks is only around Rs 1 lakh crore and the alliance over the next 3-4 years seeks to increase to at least 5 per cent of the total system-wide bank credit. At the current volume of bank credit, the 5 per cent works out to be around Rs 7.5 lakh crore. The PSB Alliance is promoted by 12 state-run banks with each of them owning 8.33 per cent of the equity capital. It was set up with the objective of having a common IT and business process platform, the chief executive of the alliance Rajinder Mirakhur told reporters while announcing a strategic technical collaboration with a supply chain-focused fintech player Veefin Solutions led by Raja ...

Match upgraded credit card benefits with spending pattern, beware of costs

Threshold limit for waiving annual fee should not exceed spending capacity