The reality is that co-lending did not take off because banks and NBFCs had to dance around issues after blowouts in shadow banking, and iron out the finer aspects of the model
Personal loan originations saw a steep decline in Q1 FY25 after consistent growth up to Q3 FY24
The Cyrus Poonawalla Group-backed NBFC plans to open 400 new branches over the next four quarters, targetting Tier-II and Tier-III cities
This move is expected to enhance credit flow to underserved segments, such as micro, small, and medium enterprises (MSMEs), while also ensuring stronger customer protection, experts said
The $45 billion industry will probably muddle through its latest difficulties, though analysts want the central bank to come up with more robust supervision
Rising delinquencies, over-leverage strain the sector
'Committed to ensure rates are set so that micro lending is viable, gains are passed to clients'
Modern lending ecosystems now have access to richer data through alternate data sources such as Account Aggregators (AA)
The Banning of Unregulated Lending Activities Bill calls for the CBI to handle probes in cases spanning multiple states or UTs
The stress in parts of retail lending is leading to business opportunities for those associated with the ecosystem
Yes Bank's loans grew 12.4 per centon year, while deposits rose 18.3 per cent
Microfinance institutions (MFIs) have played a crucial role in fostering financial inclusion but they should refrain from any reckless lending, Financial Services Secretary M Nagaraju said on Wednesday. "We should all be careful on this. Any reckless or poor underwriting norms regarding lending to Self Help Groups (SHGs) or Joint Liability Groups (JLGs) will only harm the sector," he said at an event organised by Sa-Dhan here. Anything that will impact their capacity to repay back will actually harm MFIs, he said. "So, we should be very careful in what we lend, when we lend and how we lend because their financial literacy is limitedtheir exposure to the outside world is limited. We should not capitalize on that. We should actually try to empower them, provide the needed finance and also ensure hand holding so that they flourish," he said. Nagaraju said under the SHG-Bank Linkage Programme, there are more than 77 lakh groups with Rs 2.6 lakh crore outstanding loans benefitting about
Excesses spike in post-pandemic inflation and an uneven recovery that bypassed working-class families has aggravated the challenge
Local firms are fueling competition with global giants such Cerberus and Oaktree Capital Management
Chinese lenders are still facing challenges such as narrow margins and low loan rates
The central bank faced criticism claiming that the new norms may slow down important govt projects like highways and power plants, which are critical for India's economic growth
Indian lenders, including domestic banks and non-banking financial companies, have extended Rs 88,100 crore to the Adani Group, out of its total debt of Rs 2,41,394 crore as of March 31, 2024
Companies' legacy core systems have various problems, it says
The plan also includes $600 mn for community development financial institutions, sixfold what the two banks had previously planned, and will boost planned philanthropic giving by 29% to $575 mn
After the committee submits the report, the Department of Financial Services is expected to formulate guidelines to boost the co-lending space