Page 40 - Finance Sector

The future of finance

Strategic sense about the forces reshaping banking

NaBFID MD bats for re-introduction of S4A-like debt recast scheme

National Bank for Financing Infrastructure and Development's (NaBFID) managing director Rajkiran Rai G has said there is a need to re-introduce the Scheme for Sustainable Structuring of Stressed Assets (S4A) scheme to help infrastructure finance in the future. Rai said at present, there is not a single asset calling out for such help but it is essential to get a facility which will enable "rightsizing of debt" and make it more sustainable. He also said that given the present system, no entity can exploit the S4A scheme by indulging in things like the evergreening of loans. The RBI had introduced the S4A scheme in 2016 and ended in February 2018. Debt was split into sustainable and unsustainable based on cash flows under the scheme, which was focused on corporate loans and also had a threshold above which an account could qualify. "We need to see the context in which it was brought and how it was used. And now, we are talking in a totally different context," Rai told PTI, pushing for

RBI imposes Rs 2 lakh penalty on TDCC Bank for sanctioning loan to director

The Reserve Bank of India (RBI) has said it has imposed a penalty of Rs 2 lakh on the Thane District Central Co-operative (TDCC) Bank for alleged violation of banking regulations by sanctioning loan to one of the directors of the bank. The RBI gave this information in a release issued by its Chief General Manager Yogesh Dayal on Friday. In an order issued on November 28, the RBI imposed a penalty of Rs 2 lakh on the TDCC Bank for the violation of sections 20 and 56 of the Banking Regulation (BR) Act, 1949, it said. The penalty was imposed under the powers conferred on the RBI under sections of the BR Act. The statutory inspection of the bank conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2022, and examination of the inspection report and all the related correspondence, revealed that the TDCC Bank had sanctioned a loan to one of its directors, the release said. A show-cause notice was then issue

FPIs lap up finance, healthcare, auto stocks in first half of Dec

FPIs were net buyers to the tune of Rs 42,731 crore in the first fortnight of December

Higher surrender value to badly hit life insurers margins: Report

The recent regulatory push to increase the surrender value of a life policy through the revised concept of threshold limit and adjusted guaranteed surrender value for all non-linked policies, if implemented, will hit the margins of the insurers, warns a report. The Insurance Regulatory and Development Authority (Irdai) earlier this month put out a draft circular proposing an increase in the surrender value of a life policy by revising upwards threshold limits and the adjusted guaranteed surrender value for all non-linked policies, both par and non-par. Surrender value is the amount that an insurer pays to a policyholder in case he or she terminates the policy before maturity. The move if implemented as the current format will affect the overall margins of life insurance companies, India Ratings said in a note on Thursday without quantifying by how much given the complex calculations being proposed. But the agency also believes that defining the thresholds for surrender value will b

Awaiting clearance on PA license, fintechs diversify into credit offerings

Meanwhile, other payment majors awaiting a decision expect to receive a nod in the first half of the next year

RBI announces 7-day repo, raises quantum in comparision to last week

India's central bank will conduct a variable rate repo (VRR) auction for a second straight week on Dec. 22, this time with a higher quantum of infusion

Only 18% digital loan borrowers understand data privacy rules: Study

60% of them are worried about how personal data is collected and used by lending apps

Approval for 19 General insurance cos applications in IRDAI's pipeline

Out of the 19 applicants, only Narayana Health Insurance Private Limited has reached the R2 stage of the application. Twelve of them are in their R1 stage

Insurance broking startup Finhaat raises $3 mn for business expansion

Company says technology-driven platform will improve accessibility to insurance

Pre-empt disputes between nominee, legal heirs by drafting a will

A nominee's job is only to hold a deceased's asset temporarily until the legal heirs claim it

Wager on IPOs exceeds Rs 1 trn; Doms subscribed 93x, India Shelter 37x

Another half a dozen IPOs open for subscription next week

PM Modi seeks to revive hinterland finance hub GIFT city with new breaks

Modi last weekend addressed an investment conference in the city to breathe life back into the site, calling for it to become a "new age financial services and technology nerve center"

Cloud-lending startup Lentra launches 3 AI products for financial sector

The company launched AI products, namely Lentra Convo, Lentra Insights, and Lentra Wingman, to serve lenders with solutions that enhance the lending processes

Are you facing short-term credit issues? Opt for a secured credit card

Invest in liquid and short-duration funds to finance short-term spending goals

Spandana Sphoorty Financial eyes AUM to grow to Rs 28,000 cr by FY28-end

As for geographic diversification, Spandana plans to reduce the share of the top three states to 36 per cent by FY28 from the current 44 per cent. The share of any one state would be capped at 12 %

Poonawalla HF gets a new name, rebrands as Grihum Housing Finance

The global private equity firm -- TPG acquired a 99.02 per cent equity stake in the company, taking over from Poonawalla Fincorp earlier this year

RBI cautions states with over 4% fiscal deficit, urges tax reforms

Says returning to OPS would put substantial burden on finances

Private banks need to catch up on financial inclusion drive: Official

Financial Services Secretary Vivek Joshi on Tuesday flagged lower participation by private sector banks in the government's financial inclusion drive and nudged them to step up their efforts to popularise such schemes. Speaking at the 20th Global Inclusive Finance Summit, Joshi also asked banks and financial institutions to work on three areas -- getting KYC done for inoperative accounts, nomination for bank accounts and strengthening cyber security. Joshi also said that currently, 92 per cent of the adults in India have at least one bank account, and around 3 crore Jan Dhan accounts are added every year. "We are not far from a situation where all the adults in the country will be covered with at least one basic bank account," Joshi added. In over nine years of the launch of the PM Jan Dhan Yojana (PMJDY), 51 crore bank accounts have been opened. "While public sector banks have done a wonderful job in furthering financial inclusion efforts and have done a lot of outreach for ...

CBI opposes statutory bail granted to DHFL's Wadhawans in loan scam case

The CBI on Tuesday assailed in the Supreme Court the statutory bail granted by courts below to former Dewan Housing Finance Corporation Limited (DHFL) promoters Kapil Wadhawan and his brother Dheeraj in connection with a multi-crore rupees bank loan scam case. A bench comprising Justices Bela M Trivedi and Satish Chandra Sharma was told by Additional Solicitor General (ASG) S V Raju, appearing for the CBI, that the charge sheet in the case was filed well within the 90 days statutory period and yet the statutory bail was granted to the accused. Under the Code of Criminal Procedure (CrPC), an accused becomes entitled for grant of statutory bail if the probe agency fails to file the charge sheet on conclusion of the investigation in a criminal case within 60 or 90 days period. In this case, the CBI filed the charge sheet on the 88th day after registration of the FIR and the trial court granted default bail to the accused and the Delhi High Court upheld the order, the law officer ...