Page 18 - Bank Loans

Most private banks choose 'opt-in' option on loan repayment moratorium

Largest private sector lender HDFC Bank said it would encourage customers with adequate funds to continue repayments to avoid the extra interest charges and tenor extension of the loan

EMI moratorium: No big gains for borrowers, banks to charge interest later

Experts feel that the three-month moratorium on repayment on loans to help people fight the impact of coronavirus seems to be benefiting banks rather than borrowers

Non-food loan growth pace decelerates to 7.3% in February 2020 from 13.2%

Bankers said the tepid credit off-take was reflection of elongated economic slowdown and demand

RBI extends priority sector classification for bank loans to NBFCs

This is part of steps to provide support for financial sector entities to deal with slowdown and aftermath of COVID-19

SBI offers new credit scheme to meet liquidity mismatch amid Covid-19

The loans can be repayable in 6 monthly installments after a moratorium period i.e, 6 months from the date of disbursement

Loan against securities: Pay additional margin money in falling markets

Delay in repayment carries a stiff penalty

Non-bank lenders defying caution, growing riskier unsecured loans: Report

The troubled non-bank lenders' segment is "defying caution" and growing the riskier unsecured loans portfolio at a pace of 25 per cent in the current fiscal, a report said on Thursday. A rising propensity for personal loans and attractive risk-adjusted returns are the possible reasons driving the non-banking finance companies (NBFC) to grow on such loans, domestic rating agency Crisil said. The going has been very difficult for the NBFC segment since the crisis at infra-focused lender IL&FS in September 2018, with liquidity getting scarce and the economy slowing down. Crisil said the growth in the unsecured books at 25 per cent is four times that of the decadal lows in overall assets under management, which are set to clock a 6-8 per cent growth in FY2020. It is, however, lower than the compounded annual growth rate of 30 per cent in unsecured loans clocked for the fiscal fiscal years till FY2019, it said. Since the IL&FS crisis, the major factors that hit the non banks ...

CRR-exempt loans: Deduction only on incremental lending, clarifies RBI

In its bid to boost retail credit flow, the RBI on February 6 announced that incremental loans towards automobile purchases, residential housing and loans to MSMEs will be set against the mandatory ca

Banks' loans rise over 7% in two weeks to January 31: RBI report

Non-food credit rose Rs 1.02 trillion to Rs 100.24 trillion

Top 10 biz headlines: India staring at decade low growth, Air India sale

From Rolls Royce's record sales to lower credit rate for small business, Business Standard brings you the top headlines of the day

Govt's outstanding loans from RBI at $4.36 bn in week ended Dec 13

The central government had Rs 525.75 billion ($7.33 billion) outstanding loans in the week earlier

Loan melas a short-term salve, may come back to bite NPA-hit banks

Banking and policy experts said government lending schemes had a track record of skimping on due diligence, leading to higher-than-normal levels of bad loans

As credit crunch bites, Indians pawn off family gold for quick funds

The trend, which has prompted some lenders to impose restrictions as risks and borrowing costs rise, has been accelerated by record gold prices

Banks' loans rise 8.8% in two weeks to October 11; deposits climb 9.8%

Non-food credit climbed Rs 214.40 billion to Rs 97.28 trillion, while food credit rose Rs 2.05 billion to Rs 602.90 billion

MCA to probe Ludhiana's SEL Manufacturing over Rs 4,000-cr loan default

Officials have prepared SEL Manufacturing's assets list that includes a jet and a school

Colour but no credit: Loan 'mela' kicks off, but without spot approvals

Although letters of loan sanctions were handed out to customers at the mela, most of these were already under process for some weeks at the branch level

Linking loans to external benchmark: Why it won't be easy for banks

Banks in India are not wholesale-funded entities as in developed markets, but deposit-taking. Only a percentage of their books is linked to borrowing at the repos window

Reserve Bank increases banks' loan exposure limit to single NBFC

The RBI on Thursday increased loan exposure limit of banks to a single NBFC (excluding gold loan companies) from 15 per cent to 20 per cent of its capital base, a move that will help increase credit supply to the crisis-ridden shadow banking sector. According to the extant 'Large Exposures Framework (LEF)', banks' exposure to a single non-banking financial company (NBFC) is restricted to 15 per cent of their available eligible capital base, while general single counter-party exposure limit is 20 per cent, which can be extended to 25 per cent by banks' boards under exceptional circumstances. "It has been decided that a bank's exposure to a single NBFC (excluding gold loan companies) will be restricted to 20 per cent of that bank's eligible capital base," the central bank said in a circular. The government on its part has also been taking steps to increase liquidity in the NBFC sector, which was hit after default by IL&FS Group. The liquidity crunch in the NBFC sector has hit the ...

Secondary loan mkt may completely change India's banking landscape: Experts

In India, there is a well established secondary market for stressed loans

Bank credit rises by 14.88% and deposits up by 9.13%: Central bank data

Personal loans rose by 15.1 per cent in the month, against 16.8 per cent last year.