Page 45 - Finance Sector

Is Bajaj Fin preparing to fight Jio Fin with fund raise? Analysts weigh in

The Board of Bajaj Finance is scheduled to meet next week to consider proposal for raising of funds through any or all of various methods including by way of preferential issue or QIP

RBI imposes restrictions on Ahmedabad-based Colour Merchants Co-op Bank

The Reserve Bank has imposed several restrictions on Ahmedabad-based Colour Merchants Co-operative Bank, including capping withdrawal at Rs 50,000 per customer, in the wake of the deteriorating financial condition of the lender. The restrictions, imposed in the form of 'directions', have come into effect with the close of business on September 25, 2023, the central bank said in a statement. The restrictions will remain in force for six months. According to the directions, the bank without prior approval of the RBI cannot make any grant or renew loans, make any investment, incur any liability, and accept fresh deposits, among others. "In particular, a sum not exceeding Rs 50,000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn...," the RBI said. It also said the eligible depositors would be entitled to receive deposit insurance claim amounts of his/her deposits up to Rs 5 lakh from the Deposit Insura

RBI cancels licence of Mumbai based 'The Kapol Co-operative Bank'

The RBI on Monday said it has cancelled the licence of Mumbai-based The Kapol Co-operative Bank Limited as the lender does not have adequate capital and earning prospects. Consequent to the cancellation of the licence, the cooperative bank has been prohibited from conducting the business of banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, the Reserve Bank said in a statement. The Additional Secretary & Central Registrar of Cooperative Societies, Ministry of Cooperation, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said. On liquidation, the RBI said every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). About 96.09 per cent of the depositors are entitled to receive full amount of their deposits from ...

Aditya Birla Finance aims to raise Rs 2K cr via non-convertible debentures

The NCDs are divided into three maturity options of three years, five years, and 10 years

Statsguru: Six charts explain the cost of lower financial savings

Households are said to have borrowed more to increase consumption

As indebtedness rises, microfinance industry has amber lights switched on

MFIs are now the largest providers of micro-credit with loans outstanding of Rs 1,42,245 cr at end-May 2023

We want to be No. 1 in affordable housing by FY26: Ravi Subramanian

RAVI SUBRAMANIAN, managing director and chief executive officer, feels that the sector is in a sweet spot, and capital will not be a constraint for the better-run players

Combatting cybercrime key element in nurturing trust: RBI Dy governor

The Deputy Governor held a meeting with heads of the Customer Service Committee of the Board, managing directors, executive directors in charge of customer service verticals

Global debt hit record $307 trn in Q2 despite rising interest rate

The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade

Nearly 34% loans charged 10% or more interest rate, shows RBI data

The share of bank loans with interest rates of 10 per cent or higher rose from 22 per cent to 34 per cent during this period

Surety bonds must complement bank guarantee: Irdai's Debasish Panda

According to Irdai norms, a surety bond is a contract to perform the promise, or discharge the liability, of a third person in case of his default

Ummeed Housing Finance receives sanction of upto Rs 160 cr from US DFC

Marquee investors-backed Ummeed Housing Finance (UHFPL), a digital affordable housing finance company, on Monday said it has received a sanction of up to USD 20 million (about Rs 160 crore) from the US International Development Finance Corporation (DFC). The funding will be used to provide long-tenure housing finance to the Economically Weaker Sections (EWS), Lower-Income Groups (LIGs) and Middle-Income Groups (MIGs) in Tier 2, 3 & 4 cities in the country, the company said in a statement. The company said it is backed by the four marquee investors -- Norwest Venture Partners, Morgan Stanley Private Equity Asia, Lightrock, and CX Partners. "This is an important transaction that will provide vital financing to support increased access to affordable housing in India," said James Polan, Vice President of DFC's Office of Development Credit. DFC is the US government's development finance institution that works with the private sector to channel development capital into emerging ...

First Abu Dhabi Bank announces strategic pathway partnership with COP28

FAB's COP28 partnership is an integral part of the UAE's vision to support a sustainable future, the bank's broader growth strategy and its sustainability priorities

Bank lending to NBFCs jumps 23.6% in July to Rs 13.8 trillion: Report

Banks' credit exposure to non-banking financial companies rose 23.6 per cent on-year to Rs 13.8 lakh crore in July, pushing up their overall share to 9.3 per cent during the month, an analysis of the RBI's monthly data by a ratings agency showed. The month also saw lower borrowings from international markets due to the prevailing elevated global interest rates following tightening of monetary policies by global central banks, according to a note by Care Edge. There has been a consistent upward trend in bank credit to NBFCs in the second half of FY22, coinciding with the phased reopening of the economy after the pandemic. The growth momentum further accelerated during FY23 and in the first quarter of FY24. However, NBFCs' overall borrowings on a month-on-month basis declined 3.3 per cent, primarily due to the merger of HDFC with its subsidiary HDFC Bank from July 1, Care Edge said. Mutual funds' debt exposure to NBFCs, including Commercial Papers (CPs) and corporate debt, jumped 60.

BLS Int'l, PSB Alliance partner to offer advanced doorstep banking services

Global tech-enabled services firm BLS International on Monday said it has formed a strategic partnership with PSB Alliance, a prominent company formed by public sector banks (PSBs), to provide advanced doorstep banking services (DSB). Under the partnership, BLS International's expertise and cutting-edge technology will facilitate doorstep banking services for PSBs, it added. The initial rollout will be in 58 cities, with plans for a seamless expansion to all regions and the company is committed to elevate customer experience and accessibility to all the 12 public sector banks under the PSB Alliance, it added. "This collaboration is expected to bring about a paradigm shift in the way banking services are available in the country. The partnership reflects a commitment to stay at the forefront of this transformation and offer cutting-edge services that meet the needs of today's tech-savvy and diverse customer base. "The DSB will not only enhance customer convenience but also align wit

HDFC Bank enters into co-lending partnership with CreditWise Capital

Leading private lender HDFC Bank entered into a co-lending partnership with CreditWise Capital (CWC) for extending two-wheeler loans. CWC said in a statement on Friday that by virtue of the co-lending agreement, loans for two-wheelers will be available in Tier 2, 3 and 4 towns of the country. Founder and director of CWC Aalesh Avlani said that the agreement signifies a paradigm shift in the lending landscape. The partnership combines the strength of HDFC Bank's expertise in offering credit facility and CWC's loan processing platform for assessing potential borrowers and also their credit profile. Prashant Patel, executive VP, Capital and commodity markets, HDFC Bank, said "The collaboration with CWC aligns with our vision of expanding the reach and to cater to the evolving needs of our customers".

Credit growth to moderate to 13.2 pc in FY24, NPAs to improve further: Icra

Credit growth in the banking system's will moderate to 12.1-13.2 per cent in the current fiscal from 15.4 per cent in the year-ago period, a domestic rating agency said on Thursday. Asset quality improvement will continue, while the Gross Non-Performing Assets (GNPA) ratio is expected to come down to 2.8-3 per cent by March 2024, as against 3.7 per cent at the end of the June quarter, domestic rating agency Icra said. Amid the high growth in unsecured credit, the rating agency said there is nothing much to be concerned about on the front, and the vulnerable retail book remains low and manageable. Icra Co-Group Head Anil Gupta termed the credit growth as "robust", despite the slight moderation from the percentage growth perspective, and added that the agency expects the quantum of credit to also be lower at Rs 16.5-18 lakh crore as against the Rs 18.2 lakh crore in the year-ago period. Banks will chase more deposits this year, and the overall deposit growth for FY24 is expected to c

Sidbi expects its loan book to hit Rs 5 trn this fiscal, 25% direct funding

State-owned Small Industries Development Bank of India (Sidbi) expects its loan book to reach Rs 5 lakh crore this fiscal and direct funding to touch 25 per cent of its total book over the next three years. The SME loan book (of commercial banks) as of March 2023 was Rs 25 lakh crore, while the total credit market stood at a little over Rs 148 lakh crore, according to the RBI data. "We closed FY23 with a loan book of Rs 4 lakh crore, and the demand for refinance and direct funding is so strong that I am confident of clocking 25 per cent growth in asset creation this fiscal, which will take our total loan book to Rs 5 lakh crore or more by March 2024," Sidbi chairman S Raman told reporters here on Tuesday on the sidelines of a Sidbi-organised global SME financing summit as part of the just-concluded the G20 Summit. Stating that direct financing is growing by leaps and bounds, he said that when he took over two years ago, direct financing was only 7 per cent of the book. This is today

China's Ant Group unveils finance-specific AI model as race heats up

The foray by Ant into financial AI is notable as the company founded by billionaire Jack Ma is China's biggest fintech firm, with more than 1 billion users worldwide for its Alipay payment app

ICICI Bank gets RBI nod to make I-Process Services wholly-owned subsidiary

ICICI Bank on Friday said it has received a green signal from the Reserve Bank to make I-Process Services (India) Private Ltd a wholly-owned subsidiary of the lender. The board of the bank had, at its meeting held on February 17-18, 2023, approved a proposal for making I-Process Services (India) Private Limited (iProcess) a wholly-owned subsidiary of the bank, subject to receipt of requisite regulatory and statutory approval. The bank has received approval from the Reserve Bank of India for making iProcess its wholly-owned subsidiary, subject to certain conditions, ICICI Bank said in a regulatory filing. The bank currently holds a 19 per cent stake in iProcess, it said. Started in 2005, I-Process Services (India) Private Ltd was set up to provide staffing solutions services for some of India's top financial institutions. With in-depth experience across recruitment, HR operations, payroll, compliance and training, I-Process can smartly negotiate market challenges and evolving socia