Page 12 - Loans

REC to increase loan portfolio of green projects to over Rs 3 trn by 2030

State-owned REC Ltd Chairman and Managing Director Vivek Kumar Dewangan on Wednesday stressed on the commitment to increase its loan book of green projects by ten times to more than Rs 3 lakh crore by 2030. Dewangan chaired the annual general meeting on Wednesday, which was attended by all directors on the board of the company. Many shareholders were present at the meeting through video conferencing. At AGM he said, "REC is committed to increase its present loan portfolio of Green Projects to the extent of more than ten times by the year 2030 amounting to Rs 3 lakh crore." The REC has been known for its rural electrification efforts; now it would be known for its Renewable Energy (RE) focused initiatives including solar, wind, hybrid and e-mobility projects, as well as new areas like green hydrogen, green amonia projects, round the clock projects involving bundling of RE with thermal power and ethanol manufacturing, he pointed out. He also said that while reposing faith in REC, th

Paytm disbursed loans worth Rs 5,517 crore in August, average MTU up 20%

In terms of the number of loans, in July and August, the company saw a 47 per cent jump from 6 million loans in 2022 to 8.8 million in 2023

Loan sanctions through NBFCs slip sharply to 5.7% in June quarter

Sequentially, the sanctioned shrunk by 20.3 per cent over the quarter ended March 2023 (Q4FY23), data from Finance Industry Development Council (FIDC)-CRIF showed

Punjab sees fivefold rise in study loans; statistics indicate exodus

Experts told Mint that the difficult job market in Punjab has led to young individuals seeking opportunities abroad

Fitch affirms SBI's long term rating at 'BBB' on asset quality, loans

Agency revises outlook for lender's asset quality score from 'stable' to 'positive'

PNB launches app to enable MSMEs access instant loans using GST invoices

State-owned Punjab National Bank (PNB) on Wednesday said it has launched a mobile application based on the GST Sahay scheme, an endto-end digital product under which lending can be done using GST invoices. With this integration, PNB has become the first public sector bank to facilitate frictionless credit flow to MSMEs using GST invoices, the bank said in a statement. The initiative is also in line with the bank's strategy to further the development of the MSME sector and digital credit ecosystem in the country. The PNB GST Sahay App makes the entire loan process digitised and helps eliminate any manual intervention for borrowers and makes the process more cost-effective, fast, and smooth, it said. Through this service, the loan amount will be directly credited into the borrower's current account with the bank. Speaking at the launch of PNB GST Sahay App, the bank's MD Atul Kumar Goel said, "our bank has been a pioneer in serving top industrialists as well as the masses and provid

JPMorgan wins court ruling that leveraged loans are not securities

The decision Thursday by the Second Circuit US Court of Appeals in Manhattan came in a securities fraud lawsuit brought by a trustee for note purchasers in a 2014 syndicated loan deal

Brics' bank can finance African countries to tackle urgent challenges

Bank's president Dilma Rousseff also pointed to the need for joint infrastructure projects between several countries, noting that Africa has the world's greatest untapped hydroelectric potential

Brics' NDB to provide $173 mn loan to TCTA for Lesotho water project

The New Development Bank (NDB), which was established by the BRICS bloc, and the Trans-Caledon Tunnel Authority (TCTA) have inked a loan agreement for the implementation of phase II of the Lesotho Highlands Water Project (LHWP). The NDB will provide a project loan of 3.2 billion South African Rand (USD 173 million) to TCTA under the sovereign guarantee of South Africa. Lesotho is a small landlocked country bordered on all sides by South African provinces. The LHWP is a multi-phased project to provide water to the Gauteng region of South Africa and to generate hydroelectricity for Lesotho. The Loan Agreement was signed by Vladimir Kazbekov, Vice President and Chief Operating Officer of NDB and Percy Sechemane, Chief Executive Officer of TCTA, on the sidelines of the 15th BRICS Summit currently taking place in Johannesburg. TCTA, a state-owned entity in South Africa charged with financing and implementing bulk raw water infrastructure projects, will use the funds to construct the ...

RBI prohibits lenders from compounding penal interest on loan defaults

Penalty imposed for breaches will be treated as 'penal charges'

SBI offers to extend relief on loans to customers in riot-hit Manipur

The State Bank of India (SBI) has offered to extend relief on loans to its customers in Manipur, who have been affected by the ongoing unrest in the state. The relief package includes a moratorium of up to 12 months on equated monthly installments (EMIs), interest payments, and other installments. It will be available to borrowers whose accounts had not turned non-performing assets (NPAs) as on May 3, 2023, a SBI Manipur regional office notice said. The package will be implemented based on an assessment date of May 4, 2023. Borrowers who are interested in availing relief must approach their home branches or any nearby SBI branch by August 31, 2023, the bank said. The SBI said it understands the challenges that individuals and businesses are facing in Manipur at this time, and the relief package is aimed at providing them with much-needed support. "The SBI's relief package is a welcome move for borrowers in Manipur who have been affected by the unrest. The moratorium on EMIs and ...

Banks' lending to NBFCs soars 35% to Rs 14.2 trn in June: Care ratings

Banks' lending to non-banking finance companies (NBFCs) rose by 35.1 per cent to Rs 14.2 lakh crore in June, a report said. Credit exposure of banks to NBFCs rose by a robust 35.1 per cent on-year to Rs 14.2 lakh crore in June, indicating non-banking finance firms' decreased reliance on international borrowings. This also pushed up NBFCs' share in overall credit from 8.5 per cent in June 2022 to 9.9 per cent in the reporting month, according to Sanjay Agarwal, a senior director with Care Ratings. However, the report noted that the merger of HDFC with HDFC Bank, effective July 1, will lead to a reduction in the share and also the exposure of banks to NBFCs, as HDFC's bank borrowings will undergo a temporary reclassification, resulting in a shift of exposure to HDFC Bank. Meanwhile, mutual funds' debt exposure to NBFCs, including through commercial papers (CPs) and corporate debt, also increased 14.5 per cent to Rs 1.62 lakh crore in June, it said. According to the report, MF exposur

Kerala to bear 50% interest on capital loans by cashew cos: Minister Rajeev

The Kerala government on Wednesday decided to bear a portion of the PF and ESI payments of the private cashew companies in an effort to revive the crisis-hit industry in the southern state. State Industries Minister P Rajeev while launching eight new value-added cashew products by the Kerala State Cashew Development Corporation (KSCDC) for the Onam market here, said the government has also decided to bear 50 per cent of the loan interest burden of these factories and has reached a settlement with the banks to write off all interest and compound interest on Non-Performing Assets of cashew factories. "Now the government has intervened with the banks, and the banks are now ready to write off the penal interest and the accumulated interest, and they are ready to settle these NPAs by settling 50 per cent of the amount of the loan up to Rs 2 crore and 60 per cent of the principal amount up to Rs 10 crore," Rajeev told PTI. He said the Kerala cashews produced by the KSCDC and Kerala State

RBI seeks greater transparency in floating interest rates of retail loans

As policy interest rates rise, lenders pass on the burden to customers by either raising their monthly payments or increasing the tenor of their loan

Air India in talks with commercial banks for Rs 3,000 crore loan

In talks with banks to fund down-payment under sale & leaseback deals

Byju's misses August 3 deadline to rework $1.2 billion loan terms

Byju's said no deadline had been missed as "August 3 was merely a hopeful date that was likely to be scheduled for a sign off"

IIFL Finance profit rises 43% to Rs 473 cr in Q1 on higher loan growth

IIFL Finance on Thursday reported a 43 per cent growth in net income to Rs 473 crore for the June 2023 quarter on higher loan growth led by gold and home finance. While gold loans grew 29 per cent, home finance jumped 23 per cent, and microfinance loans soared 63 per cent, and loans against property grew 54 per cent, pushing the overall loan sales by 31 per cent to Rs 68,178 crore, of which off-book assets stood at Rs 26,663 crore, up 45 per cent, the company said in a statement. Its income rose 21 per cent year-on-year to Rs 1,420 crore, the company said. Reflecting the industry trend, the company also saw its asset quality improving, with gross NPAs falling to 1.8 per cent from 2.6 per cent for the reporting quarter and net NPAs improving to 1.1 per cent from 1.5 per cent. Its provision coverage for bad loans stood at 159 per cent. The company's average borrowing cost increased by 44 bps to 9.1 per cent. As much as 96 per cent of loans are retail and 67 per cent of them (exclud

Tiger Logistics, OneNDF sign pact for collateral-free loan to SME exporters

Global logistics firm Tiger Logistics (India) on Monday said it has signed a pact with online loan marketplace OneNDF to facilitate collateral-free cargo value financing for SME exporters. The tie-up will also help Tiger Logistics integrate the financing solution with its digital freight booking and management platform FreightJar to provide enhanced access to cash to these exporters, it said. The cargo value financing solution will enable 90 per cent of export invoice value to be financed within 48 hours, the company claimed. SME exports are crucial to the economy, and bridging and bringing access through short-term funding will open up new opportunities for us to scale in the SME segment, Harpreet Singh Malhotra, chairman and managing director, Tiger Logistics (India) Ltd, said. The association with OneNDF will enable the company's SME customers to access working capital seamlessly without any collateral, he added. The collaboration will help Tiger Logistics scale its exports in

Edtech major Byju's, lenders agree to amend terms for $1.2 billion loan

Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are serving as legal advisors

Weak loans of banks to fall to 3-3.5% of gross advances by March 2025: S&P

S&P Global Ratings on Thursday projected Indian banking sector's weak loans will decline to 3-3.5 per cent of gross advances by March 31, 2025 as structural improvements and good economic prospects would support the resilience of financial institutions. In its mid-year global bank outlook, S&P said India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 per cent annually in fiscal years 2024-2026. India to remain the fastest-growing economy in Asia-Pacific, and the fastest-growing large economy globally, it said. "We project the banking sector's weak loans will decline to 3-3.5 per cent of gross loans by March 31, 2025 on the back of structural improvement, including healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices," S&P Primary Credit Analyst Deepali Seth Chhabria said. S&P also said that stronger balance sheets and higher demand should boost bank loan growth, but ...