Page 3 - Lending

Namdev Finvest's assets under management cross Rs 1,200 cr mark in FY24

Non-banking financial company Namdev Finvest, which focuses on small business lending, on Tuesday said its assets under management have almost doubled to cross Rs 1,200 crore during 2023-24 fiscal. The Jaipur-headquartered company posted a growth of 92.62 per cent in AUM (asset under management) during fiscal 2023-24, with its net worth reaching Rs 410 crore. Namdev expanded its presence across eight states -- Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Delhi, Haryana, Punjab and Uttarakhand. The company has secured a total funding of USD 41.5 million up to this point, with a USD 19 million of fundraise from Maj Invest in its latest round of Pre-Series C in April this year. Operating through 100-plus branches spanning across eight states in northwest India, the NBFC employs touch and technology (Phygital) loan approval and disbursal system, said Jitendra Tanwar, Managing Director and CEO of Namdev Finvest. "Until now, we have disbursed over 50,000 loans ranging from Rs 4,00

L&T Fin to borrow $125 million from JICA for on-lending to women, others

L&T Finance Holdings on Tuesday said it will borrow USD 125 million (about Rs 1,038 crore) from the Japan International Cooperation Agency for on-lending to women and other segments. The two entities have signed a financing pact, under which 40 per cent of the money will be allocated to women borrowers, while the rest will support farmers, micro, small and medium-sized enterprises (MSMEs) and loans to purchase new two-wheeler vehicles, including electric two-wheelers. The loan is being raised from JICA as part of a co-financing agreement with Asian Development Bank (ADB) in addition to USD 125 million it had raised from ADB in November last year. LTFH's chief financial officer Sachinn Joshi said the agreement with JICA is a substantial step toward driving sustainability and positive business impact. "This long-term loan also helps us take forward our ongoing strategy of diversifying funding sources for the company," Joshi added. JICA said poverty alleviation is a "pressing issue"

Ananya Birla's Svatantra to get Rs 1,930 cr capital from Advent, Multiples

Private equity majors Advent International and Multiples on Monday committed to invest Rs 1,930 crore in Ananya Birla-promoted microlender Svatantra Microfin for an undisclosed stake. Birla, the daughter of billionaire Kumar Mangalam Birla, will continue to hold a "significant majority stake" in the microlender even after the infusion, a statement said, claiming this to be the largest investment in any microfinance institution. At present, Svatantra and its wholly-owned subsidiary Chaitanya have a team of 17,000 employees serving 42 lakh customers in over 20 states. The microfinance lender, which was founded in 2013, acquired Chaitanya India Fin Credit for Rs 1,479 crore in August last year. Advent's past investments include a bet on Aditya Birla Capital, the Kumar Mangalam Birla-led Aditya Birla Group's non-bank lending arm. In a statement, Ananya Birla termed the investment as a "momentous occasion" and added that it will propel it towards its goal of becoming the "most impactful

Take more steps to curb unauthorised lending apps: FM to regulators

Finance Minister Nirmala Sitharaman on Wednesday asked financial sector regulators, including the Reserve Bank of India (RBI), to take further measures to check spread of unauthorised lending through online apps. Addressing the 28th meeting of the Financial Stability and Development Council (FSDC) here, Sitharaman also asked regulators to maintain constant vigil and be proactive towards detecting emerging financial stability risks, given the domestic and global macro-financial situation. The FSDC deliberated on issues related to macro financial stability and India's preparedness to deal with them, an official statement said after the meeting. The ongoing inter-regulatory issues were also discussed to support GIFT IFSC in its strategic role to become one of the world's premier international financial centres and perform its envisioned role of facilitating foreign capital and financial services for the domestic economy, it said. The FSDC discussed various issues related to the ...

Nabard projects 16% jump in priority sector lending potential in Bengal

The National Bank for Agriculture and Rural Development (Nabard) on Saturday projected a robust double-digit growth in priority sector lending potential of Rs 3.15 lakh crore in West Bengal for 2024-25. Nabard's Chief General Manager Usha Ramesh unveiled the West Bengal state focus paper on Saturday alongside bankers, State Chief Secretary B P Gopalika, and other officials. The paper projects a priority sector lending potential of Rs 3.15 lakh crore in Bengal in 2024-25, marking a 16 per cent increase from the previous fiscal year's figure of Rs 2.70 lakh crore. In the first quarter of the current fiscal year, priority sector lending in the state amounted to Rs 86,531 crore, officials said. The optimistic outlook is fuelled by strong performance of the MSME sector in the state, it said. "We are taking several interventions and projects. But the projections made for 2024-25 can only be achieved through the coordinated approach of all stakeholders," Ramesh said. She expressed confi

Revised norms on fair lending practice effective from April 1, says RBI

The revised fair lending practice, which prohibits banks and NBFCs from using penal charges on loan defaults as a revenue enhancement tool, will come into effect from April 1, the Reserve Bank said on Monday. Concerned over the practice of banks and non-banking financial companies (NBFCs) using penal interest as a revenue enhancement tool, the RBI on August 18 last year had modified norms, under which lenders would be able to levy only "reasonable" penal charges in case of default in repayment of loans. Banks, NBFCs, and other entities regulated by the RBI were given an extension of three months till April to implement the revised norms. In a set of frequently asked questions (FAQs), the RBI on Monday said that in the case of existing loans as well, the instructions shall come into effect from April 1, 2024, and the switchover to the new penal charges regime shall be ensured on the next review/ renewal date falling on or after April 1, 2024, but not later than June 30, 2024. On ...

Need to move towards data-based lending: Financial Services Secretary

Financial Services Secretary Vivek Joshi on Friday outlined the vision for 2047 and said financial institutions must move towards data-based lending, instead of judgement-based lending, in the medium-term. He said global Indian banks with a footprint across continents hold immense significance for Indian prowess and international influence as these serve as a conduit for foreign investment in the country. Speaking at the CII Global Economic Forum, Joshi said to exceed global average of per capita GDP by 2047, India's real GDP has to grow 7-7.5 per cent. "In the medium term, we must move towards data-based lending instead of judgement based lending especially for small business," Joshi said. He said there is a need to further deepen capital markets with active participation from diversfied investors. "In the context of robust financial services, it is imperative that in 2047, India will have a highly competitive viable banking sector with substantial indian ownership, universal acc

RBI's ban on Bajaj Finance's eCOM and Insta EMI Card: All you need to know

Bajaj Finance said it is temporarily suspending the sanction and disbursal of new loans under the two products

Pidilite to enter lending business, to acquire promoter group's NBFC firm

Adhesive and construction chemicals manufacturer Pidilite Industries plans to enter the lending business, providing small-value retail loans. To facilitate this, Pidilite Industries, would acquire an existing NBFC -- Pargro Investments, belonging to its Promoter Group, according to a regulatory update. "Pidilite Industries Ltd, intends to set up a Lending Business," the company said. Over the next two years, to build the new business, the company expects to invest up to Rs 100 crore in tranches, through an optimum mix of equity and debt. "The new business would provide credit to its domain ecosystem to support their business growth. This credit will be provided primarily in the form of small-value retail loans," said Pidilite, the makers of Fevicol, Dr Fixit, Fevikwik and M-Seal. Pargro will be acquired by Pidilite through a wholly-owned subsidiary under a Share Purchase Agreement (SPA) to be entered by March 31, 2024. "The acquisition of Pargro will be done at a fair value of up

Hinduja Group in talks with private debt funds to raise around $800 million

India has become a hotbead for private credit activity, in part because regulation forbids local banks from extending loans for mergers and acquisitions

ADB unveils capital moves to boost lending by $100 billion over a decade

ADB's move to stretch its balance sheet follows similar measures announced by the World Bank earlier this year that will yield a $50 billion increase in lending over a decade

NOC to account statement: What you must do for loan closure process

Get no objection certificate from lender; have fresh encumbrance certificate issued by registrar

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".

World Bank mulling local currency lending in countries like India: Official

The World Bank is mulling local currency lending in countries like India to help borrowers save on costs, a senior official said on Friday. "How do we do local currency lending for a country like India is also something we are trying to think of at a price which is advantageous to this country," Anshula Kant, the Managing Director and Chief Financial Officer of the World Bank, said. Speaking at the event on global economy organised by the Ministry of Finance and the Reserve Bank of India (RBI) as part of India's G-20 presidency, Kant said the Indian government has a "huge advantage" in local currency borrowing as compared to the World Bank, even though the Washington DC-based multilateral bank is rated AAA. In some countries like the ones in Africa, which do not possess market infrastructure from where the bank can borrow, the bank may not adopt the local currency lending strategy, Kant said. At the event, Chief Economic Advisor to the Government of India V Anantha Nageswaran said

MDBs' lending resources to face more pressure: FM Nirmala Sitharaman

Sitharaman says G20 under India's presidency to touch upon all aspects of MDB evolution

Microfinance grows by nearly 10 times in 10 years to cross Rs 5 trn mark

Microfinance in India has a long history. Since turn of this century, it has been expanding rapidly as a viable financial services business because of influx of Microfinance NBFCs

China's international lending, developing world's indebtedness rise: Report

It also noted how China has provided a staggering $240 billion in loans to countries in debt distress with a specific jump in lending from 2010

Consumer lending platform Niro raises Series A funding of Rs 90 crore

Niro aims to empower consumer internet platforms to become providers of credit (and other financial) products for their consumers

PhonePe raises another $100 mn to expand into lucrative lending space

With the latest round, PhonePe, India's most valuable payments firm with an estimated value of $12 billion, has raised $650 million across four tranches from its backers, including Tiger Global

US bank lending declines by most on record in final weeks of March

The Fed's report showed that by bank size, lending decreased $23.5 billion at the 25 largest domestically chartered banks in the latest two weeks