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ED questions Paytm officials, gets documents following RBI's decision

The Enforcement Directorate has questioned senior Paytm executives and taken submission of documents from them following the recent RBI action of barring Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, official sources said Thursday. The central agency, according to the sources, is conducting preliminary examination of documents before it decides to launch a formal investigation into the RBI-flagged alleged irregularities at the fintech company under the Foreign Exchange Management Act (FEMA). Some documents have been recently submitted by Paytm executives following which they were asked certain questions. Some more information has been sought, the sources said. As of now, no irregularities have been detected and a case under FEMA will only be registered once any contravention under the said law is found, they added. An investigation under the Prevention of Money Laundering Act (PMLA) involving Paytm is already going on for some time, they ...

Japan's Mizuho Bank acquires 15% in Credit Saison India for Rs 1,200 cr

Digital non-banking finance company Credit Saison (CS) India on Tuesday said Japan's Mizuho Bank has acquired 15 per cent stake in it for Rs 1,200 crore. This is Credit Saison's first investment from an external investor, a statement from CS India said. This strategic investment will enable CS India to continue its journey towards becoming a well-diversified, resilient lending franchise with a focus on growth and profitability, the statement added. CS India received its (Non-banking Finance Company) NBFC licence in September 2019 from the RBI and focussed initial operations in wholesale lending and tech-integrated partnerships with other NBFCs and fintechs. Later, it expanded into retail lending through partnerships. Currently, it has 1.2 million active loans worth over Rs 10,000 crore, Presha Paragash, chief executive of CS India said. Mizuho Bank is the retail and corporate banking unit of Mizuho Financial Group while CS India is the domestic arm of Saison International, one of

Moneyboxx Finance Q3 results: Profit at Rs 2 cr, total income at Rs 33.5 cr

Moneyboxx Finance, an NBFC engaged in small business lending segment, has reported a profit of Rs 2.01 crore for the quarter ended December 2023. The company had incurred a loss of Rs 2.7 crore in December quarter last financial year. The company posted a profit after tax of Rs 5.02 crore in April-December 2023-24. It incurred a net loss of Rs 7.22 crore in the year-ago period. In December quarter FY24, total income was at Rs 33.52 crore. It was Rs 13.19 crore in the year-ago period. In a statement, the company said its assets under management more than doubled to Rs 530 crore as of December 31, 2023, driven by branch expansion, higher productivity, and growth in lending partnerships. "We have built a sustainable, scalable, and tech-driven business model with robust underwriting practices to cater to the promising and underserved small business loan market in rural and semi-urban areas," said Deepak Aggarwal, Co-CEO and CFO of Moneyboxx Finance. The company caters to micro ...

RBI slams microfinance institutions for charging higher rates to borrowers

In 2021, the RBI had given full freedom to entities on interest rates to be charged for microloans by lifting the interest rate cap of 24 per cent put earlier

Uncharacteristic of NBFCs to seek bank licences: RBI Dy Guv Rajeshwar Rao

Reserve Bank Deputy Governor M Rajeshwar Rao on Friday said it is uncharacteristic of non-bank lenders to seek bank licences when they are already enjoying some regulatory advantages. Addressing a conference on non-bank finance companies (NBFCs) organized by CII, Rao also hit out at certain microlenders for "misusing" the liberty offered by the regulator on interest rates, and charging high rates. Rao also expressed displeasure at certain peer-to-peer lending platforms for following business practices which are not in line with the licensing guidelines, and made it clear that such breaches were not acceptable. He also spoke about the constant demand from NBFCs to convert into banks, and made it clear that regulations for even entities in the top-most tier of NBFCs are not at par with universal banks, and NBFCs enjoy some advantages. "NBFCs have evolved as niche companies serving specific economic functions, and it is uncharacteristic of them to demand becoming like a bank," Rao ...

Shadow of KYC-led money laundering falls over Paytm Payments Bank

Payments bank says it has upheld compliance with supervisory instructions

Highlights of the day: Delhi airport sees 13 flight diversions on Feb 1

From the delay in train, flight services to the updates about the interim budget 2024, catch all latest news here

Aditya Birla Capital Q3 results: Consolidated net up 39% at Rs 736 crore

The company's consolidated revenue grew by 29 per cent Y-o-Y to Rs 9,997 crore, up from Rs 7,743 crore in the quarter ended December 2022

Paytm expects up to $60 million hit from RBI action on its payments bank

Paytm will take steps immediately to comply with the RBI's directions, the fintech company said in a statement on Thursday. As a result, it expects a worst-case impact of Rs 300 crore ($36.12 million)

YES Bank's Q3 net rises to Rs 231 cr helped by drop in loan-loss provisions

India's Yes Bank said third-quarter net profit more than quadrupled, helped by a drop in loan-loss provisions and healthy growth in loans, but the result still fell short of expectations

Canara Bank has increased lending rates for NBFCs by 15-50 bps: CEO

The state-owned lender is cost conscious and will not focus on top line alone, says K Satyanarayana Raju

Sebi may allow AIFs to 'exclude' investors from certain investments

Proposal will help address concerns about evergreening of loans

Spandana Sphoorty Financial net profit jumps 79% to Rs 127 crore

Microlender Spandana Sphoorty Financial on Monday reported a 79 per cent jump in net profit at Rs 127 crore in the October-December quarter of current fiscal on improved asset quality, loan growth and higher interest income. The Hyderabad-based lender said its income jumped to Rs 657 crore, up 75 per cent, in the quarter under review from Rs 375 crore registered during the same period of last fiscal. Its net interest income also grew by 60 per cent to Rs 407 crore in October-December period. Loan book grew 52 per cent to Rs 10,404 crore at the end of the reporting period from Rs 6,852 crore a year ago, while net disbursement went up 8 per cent to Rs 2,543 crore on addition of 3.4 lakh customers. The lender's total borrower count rose to 29.6 lakh. Asset quality improved with gross bad loan ratio declining to 1.51 from 5.31 and net bad loans ratio to 48 basis points from 2.52, Shalabh Saxena, managing director of the company said in a statement. He further said the company's provi

Nifty50 may see one change, Next50 seven in March rejig, shows data

The cutoff date for calculating the changes to various Nifty indices is January 31. The index provider typically announces the outcome of the rebalancing exercise during the second half of February

Sebi mulling exemptions in AIF norms, may allow pledging of infra assets

Sebi has been consulting with the Reserve Bank of India (RBI) too, he added, to discuss the potential 'financial stability ramifications'

Lenders retain AIF holdings even as Reserve Bank of India deadline nears

Industry is awaiting certain relaxations or extensions based on their recommendations

Reserve Bank of India likely to withdraw relief to govt-owned NBFCs

Substantial time has elapsed since Government owned NBFCs were brought within the ambit of prudential regulations in May 2018

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 ...

CredAble records a two-fold increase in loan disbursements in 2023

The company plans to raise $50-75 million by June this year in its series C round

P2P lending: Barking up the wrong tree?

Around 15 P2P platforms went live, but one-third of them have shut up shop. Analysts say four of them have more than 90 per cent of the market share