Page 22 - Finance Sector

RBI's new credit risk standards are game changer for Indian economy

A well-executed model risk management framework can give a lender precise credit assessment, improve customer trust and edge over competition

Insurers have festivities covered as India prepares for celebrations

Step up coverage and costs for organisers and participants as festival season begins

RBI cancels registration of Margdarshak Financial Services over high NPAs

The Reserve Bank of India (RBI) has cancelled the registration of Lucknow-headquartered Margdarshak Financial Services Ltd over high net NPAs and defaults on repayment to lenders. As on March 31, 2021, the company failed to maintain the minimum regulatory net owned fund of Rs 5 crore and minimum capital adequacy ratio of 15 per cent stipulated for NBFC-MFI, the RBI said, while cancelling its certificate of registration. As per the statutory audit, as on March 31, 2021, the NBFC was facing cash flow issues and defaulted on repayment of Rs 49.27 crore to its lenders. "Further, the auditors have observed that due to losses (Rs 187 crore) and high net NPAs (Rs 82.37 crore) there is material uncertainty which casts significant doubt on the company's ability to continue as a going concern," the central bank said. Further, delay was observed in finalising the balance sheet for the year ending March 31, 2021, as the same was finalised after nearly seven months, on October 22, 2021. The RB

Amid slow deposit growth, PSBs urge govt to keep cash balances with them

Move to help lenders to gain low cost deposits

Transmission of policy rate has been greater on deposits, shows RBI data

Among different bank groups, state-owned banks have seen a greater increase in interest rates on term deposits-both new and existing-compared to their private sector peers

Banks caught in a trap

The cost of deposits is on the rise, but banks can't raise interest rate on close to 60% of their loan books

Voice of Global South summit: Yunus calls for redesigning financial system

Muhammad Yunus, Chief Advisor of the Bangladesh government, on Saturday called for redesigning the financial system in the Global South to ensure wealth is shared by all and asserted that combining entrepreneurship with social business can create miracles. If we give an important place for social businesses, that is businesses which are created solely for fixing social and environmental problems, the 84-year-old Nobel laureate said, adding, that it can set a path to create a world of three zeros zero net carbon emissions, zero wealth concentration, and zero unemployment. Yunus was addressing the Third Voice of Global South Summit' being hosted virtually by India. Pointing out that today's youth want jobs, just because they are prepared by an education system in all our countries to get ready for jobs with their creative capacities forgotten, Yunush, the pioneer in microfinancing in Bangladesh, called for redesigning the system. Our education system and financial system are built o

Kerala's Kollam gets India's first digital court for cheque bounce cases

Chief Minister Pinarayi Vijayan hailed this as a historic day for Kerala's judiciary

Reserve Bank of India tightens HFC norms to bring them on a par with NBFCs

The RBI stated that the norms have been revised to harmonise the guidelines for NBFCs and housing finance companies

Idea behind SROs is not to make them more regulatory: Anish Mashruwala

The idea of SRO is not to make it more regulatory but it's more decentralisation from the regulator to allow a larger sense of how a particular product in the industry should develop, he says

Rates to remain elevated for loans, bulk deposits: Bank of India MD & CEO

With rising cost of funds, loans rates on highly rated corporates will need a relook to protect margins, he says

Cross-border UPI payments in Nepal cross 100,000 within six months

Under the arrangement, Indian users in Nepal can make instant UPI payments across stores in Nepal using UPI-enabled applications

Managing health insurance, setting up kitchen: Top personal finance stories

In this week's newsletter, we report about rising health insurance premiums and the best modular kitchens in the market

FMCG sector growth at 4% in Apr-June on relaxed consumption: NielsenIQ data

Industry growth steady and reflects resilience and adaptability, says consumer research firm NielsenIQ

India Shelter Finance Q1 results: Net profit surges 77% to Rs 84 cr

India Shelter Finance Corporation on Thursday reported a 77 per cent year-on-year growth in profit after tax (PAT) to Rs 84 crore in the three months ended June 2024. In comparison, the company posted a PAT of Rs 47 crore on the year-ago period. The company registered a 37 per cent year-on-year (YoY) growth in Assets Under Management (AUM) to Rs 6,509 crore in the April-June quarter of the current financial year (FY25) from Rs 4,759 crore in the year-ago period. "India Shelter delivered another quarter of consistent performance across parameters with sustainable growth in our AUM. We now operate out of 236 branches across 15 states, having added 13 new branches during the quarter," Rupinder Singh, Managing Director and CEO of India Shelter Finance Corporation, said. "Going forward, we will continue to focus on sustainable growth by penetrating deeper into our existing geographies, where a significant unserved and underserved population resides," he added. The company's disbursemen

Banks should offer innovative products, services to garner deposits: Das

This nudge comes amid sluggish deposit growth, which has led to a widening gap between credit and deposit growth

IBBI introduces self-regulatory guidelines for committee of creditors

To ensure their professional competence, the CoC must keep themselves updated with the provisions of the Code, rules, and regulations, according to the guidelines

RBI mandates fortnightly credit information reporting to boost transparency

Credit institutions (CIs) are required to report the credit information of their borrowers to credit information companies

Mushrooming mule accounts fuel rise in financial frauds, says official

This represents a more than 10 fold increase over the four year period, underscoring the growing sophistication of fraudsters and exposing vulnerabilities within the financial system

ICICI Bank fostering compliance, strong risk culture: CEO Sandeep Bakhshi

He also added that the bank is seeing exciting opportunities arising from the Indian economy and its global linkages and is committed to supporting the economy in its transformative journey