Page 27 - Finance Sector

Muthoot FinCorp plans to reduce the share of its gold loan business

During the last financial year, the company reported its highest-ever loan disbursements with consolidated disbursements at Rs 61,703.26 crore, up by 18.60 per cent

Muthoot FinCorp records highest-ever loan disbursement at Rs 61,703 cr

Muthoot FinCorp on Tuesday said it has recorded highest-ever loan disbursements in FY24 that rose 18.6 per cent to Rs 61,703.26 crore on a consolidated basis. The asset under management (AUM) stood at Rs 33,359.30 crore. The consolidated net profit rose 62 per cent to Rs 1,047.98 crore in FY24, Muthoot FinCorp said in a statement. "Muthoot FinCorp Ltd, the flagship company of 137-year-old Muthoot Pappachan Group, reports highest-ever loan disbursements in FY24 with consolidated disbursement at Rs 61,703.26 crore, up 18.60 per cent," the statement said. On a standalone basis, Muthoot FinCorp's disbursements rose 15 per cent year-on-year to Rs 50,167.12 crore from Rs 43,443.26 crore in the previous year. The profit after tax (PAT) increased 22.40 per cent to Rs 562.81 crore compared to Rs 459.81 crore in FY23. The Assets under Management (AUM) stood at Rs 21,349.85 crore, up 26.3 per cent compared to Rs 16,910.67 crore in the corresponding period of the previous year. Its revenue w

FSIB to interview eligible candidates for SBI Chairman post on May 21

FSIB, the headhunter for directors of state-owned banks and financial institutions, is scheduled to interview eligible candidates for the post of SBI chairman on Tuesday, sources said. Financial Services Institutions Bureau (FSIB) will interview the eligible MDs of the bank to select a replacement for Dinesh Khara, who will be superannuating on August 28, when he turns 63, the upper age limit for the SBI Chairman position. As per the convention, the chairman is appointed from a pool of serving managing directors of SBI, the country's largest lender. FSIB would recommend the name and the final decision would be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. FSIB is headed by Bhanu Pratap Sharma, former secretary of Department of Personnel and Training (DoPT). The members of the government-appointed selection panel are Financial Services Secretary, Department of Public Enterprises Secretary and an RBI Deputy Governor. Other members of the

PGIM India Asset Management aims to double AUM to Rs 50,000 cr in 2-3 yrs

PGIM India Asset Management aims to more than double its assets under management to Rs 50,000 crore within the next 2-3 years, which will be driven by efforts to complete the product basket coupled the strong focus on SIP, its top official said on Monday. The asset management firm, which forayed into the Alternative Investment Fund (AIF) space in October 2023, is also looking to complete its product basket with the launch of new schemes including a special opportunities fund. The fund house, which has an Asset Under Management (AUM) of Rs 23,240 crore at present, expects to touch Rs 50,000 crore mark AUM in the next 2-3 years, Abhishek Tiwari, Chief Business Officer of PGIM India Asset Management, told PTI here. "Factors that will drive the growth of PGIM India Asset Management are -- the organic growth of the asset management industry in India and our focus on completing our product basket along with the continued focus on SIP which is a very healthy part of our business growth," h

PNB Housing Finance expects 17% loan growth on increase in branch network

PNB Housing Finance aims to grow its portfolio by 17 per cent during the current fiscal on the back of the increase in branch network and focus on affordable housing loan. The housing finance company has enough capital to sustain this kind of high growth, PNB Housing Finance managing director Girish Kousgi told PTI. For the next 2-3 years, he said, "we dont need capital as we just raised capital through the rights issue last year". Last year, the mortgage firm raised about Rs 2,500 crore from rights issue. Talking about the strategy to achieve this kind of loan growth, he said, PNB Housing closed the year with the loan book of Rs 63,000 crore and aims to grow it by 17 per cent with focus on affordable segment. Its affordable housing loan book, which it started 15 months back, stood at Rs 1,790 crore. However, PNB Housing Finance's corporate loan book shrank 46 per cent in FY24 to Rs 2,052 crore as it was on a balance sheet cleansing exercise. He said the company would also incre

Need proactive risk mitigation measures to tackle cyberattacks: RBI

RBI deputy governor Swaminathan J said the potential impact of a cyberattack on a bank's operations, reputation, and financial stability cannot be "overstated", as he emphasised the need for proactive risk mitigation strategies. Speaking at the Conference of Heads of Assurance of Urban Cooperative Banks here on Thursday, the deputy governor said that in the ever-changing landscape of banking, new risks constantly emerge. While traditional risks like credit, market and liquidity risks remain significant, new challenges like cybersecurity threats and operational disruptions have emerged. The proliferation of digital technologies and the interconnected nature of financial systems have exposed banks to a myriad of cyber threats, ranging from data breaches to malicious ransomware attacks, he added. "The potential impact of a successful cyberattack on a bank's operations, reputation, and financial stability cannot be overstated, underscoring the critical importance of robust cybersecurity

Creditors' haircuts in bankruptcy cases jump to 73% in FY24: Report

The haircuts taken by creditors in bankruptcy resolutions have increased to 73 per cent in FY24 from the 64 per cent in FY23, a report said on Friday. A total of 269 resolution plans were approved by the National Company Law Tribunals (NCLTs) in FY24, up from 189 in the year-ago period, the report by domestic rating agency Icra said. The new admissions declined to 987 in FY24 from the 1,263 in FY23, the agency said, attributing the same to a higher base in the previous fiscal because of the Covid-19 pandemic-related stress. It can be noted that the haircuts, or sacrifices, in comparison to the total dues, which are done by lenders when it comes to corporate insolvency resolutions has led to some concerns in the past about the value at which a new bidder is getting the assets. Its group head for structured finance ratings, Abhishek Dafria said there has been a "worsening" of the haircuts which are taken by the creditors through the Insolvency and Bankruptcy Code (IBC) process to a .

HDFC Bank raises $500 mn from IFC to extend microloans to women borrowers

HDFC Bank on Friday said it has raised USD 500 million from IFC for onlending to underserved women borrowers. The country's largest private sector lender will extend finance for income generation, fostering financial inclusion and socio-economic growth, as per an official statement. It will extend the microloans to self-help groups and joint liability groups of women enrolled under the Sustainable Livelihoods Initiative (SLI) of the lender. HDFC Bank's group head for Treasury, Arup Rakshit, said this is a longer duration credit facility which has been availed by the lender, and it will help in boosting the bank's efforts in empowering women. The statement said even though the non-banks have a deeper reach and serve two-thirds of the microfinance market, banks' extensive reach and lower funding costs can be leveraged to extend microloans to women. "Access to financial services is key to empowering women and strengthening the economy," IFC's regional director for South Asia Imad ...

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

IIFL Finance raises Rs 1,271 crore through rights issue to fund biz growth

IIFL Finance on Wednesday said it has raised Rs 1,271 crore through a rights issue as part of efforts to raise capital to fund business growth. The decision to raise capital through a rights issue was made following the RBI's ban on March 4, which prohibited the NBFC firm from disbursing gold loans due to supervisory concerns. The rights issue opened on April 30, 2024, and closed today, IIFL Finance said in a regulatory filing. The rights issue offering 4,23,94,270 shares of IIFL Finance has been oversubscribed by 135 per cent (5,72,03,080 shares), as per data available on exchanges. The rights issue was offered to the existing shareholders at Rs 300 per share in the ratio of one share for every nine shares held. Promoters Nirmal Jain and R Venkataraman and family have fully subscribed to their shares since the issue is oversubscribed. Besides, Indian-Canadian billionaire Prem Watsa-backed Fairfax India, which is the largest institutional shareholder has also participated in the

IMF okays members to channel reserve assets to MDBs for hybrid instruments

The IMF said the board's decision on May 10, should help broaden the use of SDRs, while increasing the attractiveness of the SDR as a reserve asset

Mutual funds embrace healthcare, finance stocks as smallcaps bounce back

Smallcap funds raked in net inflows of Rs 2,209 crore in April amid a sharp rally in smallcap shares

Shriram Finance will focus more on its core business: Umesh Revankar

Warburg to invest Rs 1,000 crore in SHFL

Indian banking industry increases their cyber insurance cover in FY24

The cyber insurance claims ratio by the banking industry in India has increased to over 50 per cent in the financial year 2022-23 compared to 40 per cent in the financial year 2021-22

Aditya Birla Capital Q4 result: Consolidated net profit up 33% at Rs 812 cr

The company's consolidated revenue grew by 32% Y-o-Y to Rs 12,079 cr

What ails public sector banks?

Two books written by public sector bankers flag symptoms that range from seemingly small episodes to serious, reputation-ruining actions

Non-residents allowed to open margin accounts for derivative contracts

The move by RBI is expected to enhance efficiency in managing margin obligations

RBI appoints R Lakshmi Kanth Rao as executive director effective May 10

As executive director, Rao will handle the Deposit Insurance and Credit Guarantee Corporation (DICGC), the Right to Information Act (FAA), and the Department of Communication

Risk provisioning

The stability of the banking system should be paramount

RBI asks NBFCs to stick to gold loan cash payout cap of Rs 20,000

Retail credit in India has been growing at a rapid clip, with loans against gold rising threefold over the last four years