Page 2 - Finance Sector

Moody's withdraws IDBI Bank's credit ratings for business reasons

Global credit rating agency Moody's Investors Service on Monday said it has withdrawn IDBI Bank Ltd's ratings for business reasons

Shift to old pension scheme may lead to liability add-up in future: Rajan

In an interview to online portal on sidelines of World Economic Forum (WEF) at Davos, Rajan said that reason why new pension scheme was adopted because in old scheme, huge liabilities had built up

Sidbi partners with VFS to extend MSME loans up to Rs 5 lakh at 13% pa

The Small Industries Development Bank of India (SIDBI) has entered into a partnership with VFS Capital to extend loans to the MSME sector, the Kolkata-based microfinance institution said. VFS Capital will extend MSME loans upto Rs 5 lakh at 13 per cent interest rate per annum, a top company official said. "We have tied up with SIDBI to provide loans to the SME and MSME sectors. VFS Capital expects to disburse Rs 30-40 crore under the scheme this fiscal, MD and CEO Kuldip Maity said. The loan book of the MFI during 2022-23 is expected to be around Rs 1,100-1,200 crore from Rs 805 crore in the last financial year, he said. Maity said the company is planning to expand its footprint in the north-western part by launching operations in Rajasthan by the end of January. At present, it operates in 13 states including West Bengal, Assam and Tripura. VFS Capital also plans to add 35 branches within this fiscal, taking the number to 270 across the country. We aim to raise Rs 100 crore in .

RBI grants in-principle approval for payment aggregator licence to EnKash

Fintech startup EnKash has got in-principle approval from RBI for payment aggregator's licence, the company said on Wednesday

HDFC Ltd assigns 19% higher loans worth Rs 8,892 cr in Q3 ending Dec 2022

Mortgage lender HDFC Ltd on Tuesday said it has assigned (sold) 19 per cent higher loans to the tune of Rs 8,892 crore in the third quarter ended December 2022. The corporation had assigned loans amounting to Rs 7,468 crore in the corresponding quarter of the previous year, HDFC Ltd said in a regulatory filing. "All the loans assigned during the quarter ended December 31, 2022, were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank," it added. Loans sold in the preceding 12 months amounted to Rs 35,937 crore against Rs 27,591 crore in the year-ago period. Gross income from the dividend for the quarter ended December 31, 2022, was Rs 482 crore compared to Rs 195 crore a year ago, it added. During the December 2022 quarter, the profit on the sale of investments was nil, the mortgage lender said. Last April, the country's largest private lender HDFC Bank agreed to take over the biggest domestic mortgage lender in

Outstanding microfinance loan portfolio to rise 20.3% in FY23: MFIN

Outstanding loan portfolio of the micro-finance institution (MFI) sector across India will increase around 20.3 per cent at Rs 3.25 lakh crore in 2022-23 compared to the previous fiscal, said the MFIN, a self-regulatory organisation (SRO) recognised by RBI. During the last fiscal, the total outstanding of the MFI sector was Rs 2.7 lakh crore, and the sector had created around 1.32 crore jobs in the country since 2000, Micro-Finance Institution Network (MFIN) CEO Alok Misra said on Tuesday. "The MFI sector's outstanding for the current fiscal will be around Rs 3.25 lakh crore. There will be a 20.3 per cent rise over the previous fiscal year," Misra told reporters here on Tuesday. The collection efficiency ratio of the sector during the pandemic of 2021 and 2022 had been affected as group gatherings did not take place properly. "But the collection efficiency ratio at present has increased to 97 per cent for the sector from 70 per cent during the pandemic," Misra said. According to a

Surge in credit to NBFCs takes service sector loans past those to industry

RBI data shows that as of November 18, outstanding loans to the services sector amounted to Rs 33.15 trillion while those to industry stood at Rs 32.94 trillion

ICICI Prudential Life Insurance's asset under management crosses Rs 2.5 trn

The company commenced operations 22 years ago in December 2000, and had 'assets under management' of approximately Rs 100 crore at the end of FY2001

Finance Ministry red-flags CSS fund mis-utilisation by Chhattisgarh govt

Says Rs 1,213 cr being spent in violation of rules and Rs 11 cr diverted to time deposits to earn interest income; calls for action against officers responsible

Finance ministry pulls up PSBs over mis-selling of insurance products

Banks have been advised to ensure '100 per cent' compliance of know your customer (KYC) guidelines while sourcing insurance business

Short-duration funds suit conservative investors during pause in rate cycle

Take a tactical bet on longer-duration funds when RBI moves to a tightening stance

SBI board approves raising Rs 10,000 crore capital through tier I bonds

State Bank of India (SBI) on Wednesday said its board has approved Rs 10,000 crore capital raising plan through Tier I bonds. The fund raising through Additional Tier 1 (AT1) capital up to an amount of Rs 10,000 crore is subject to Government of India concurrence, the bank said in a regulatory filing. The Central Board accorded an approval for raising capital by way of issuance of Basel III compliant debt instrument in INR and/or any other convertible currency, up to FY24, it said. The fund would help the bank grow its loan book. Last week, SBI had announced that its personal banking advances, excluding high value home loans, have crossed the Rs 5 lakh crore-mark. The country's largest lender took a year to book the last Rs 1 lakh crore of advances, as against over 15 months for the previous Rs 1 lakh crore and over 30 months for the Rs 1 lakh crore before that.

India gets support on its proposed finance track priorities for 2023 at G20

The First G20 Finance and Central Bank Deputies Meeting, under the Indian Presidency, saw broad support on the proposed priorities of India's G20 Finance Track agenda for 2023, Secretary in the Department of Economic Affairs Ajay Seth said. The meeting which concluded here on Wednesday was held under the co-chairship of Seth and Deputy Governor, Reserve Bank of India, Dr. Michael Patra. The meeting saw a gathering of over 160 foreign delegates including Deputies from G20 member countries, invitee countries, and international organisations. This marks the beginning of the G20 Finance Track under the Indian Presidency. The agenda of this meeting was crafted keeping in view the vision given by Prime Minister Narendra Modi and Indian Presidency's G20 theme. The meeting was conducted with the aim of seeking the views of G20 members on India's G20 Finance Track priorities for 2023 across various workstreams. Physical presence of most G20 delegations, invitees and international organisat

Billionaire Anil Agarwal struggles to get backers for $19 billion chip unit

Investors to whom Agarwal pitched the plan raised concerns about the group's limited experience in the sector, say people aware of the development

G20 meet: Infra to sustainable finance, global headwinds take centre stage

The ministry and the Reserve Bank of India (RBI) are jointly co-hosting the FCBD meeting

Curb on securitising short-term maturity loans may hurt micro loan biz

Change required by the central bank could make a certain portion of loan books ineligible for securitisation

Core activities of a bank should not be outsourced, says RBI's AK Choudhary

"While outsourcing it is very important that adequate safeguards are established to seal the situation as well as the financial stability of the banking system," Choudhary added

Canara Bank wins 'Banker's Bank of the Year Award 2022' for India

The winners are judged on their ability to deliver returns, strategy, innovation, technology and product & services in their respective geographies in the last 12 months

India extends deadline to levy cap on digital payment transactions

India has decided to extend the deadline on capping the share of digital payment transactions by about two years to Dec. 31, 2024, the National Payments Corporation of India (NPCI) said on Friday

Bank credit grows nearly 17% for fortnight ended Nov 18, says RBI

Indian banking system's outstanding credit grew by 16.96 per cent for the fortnight ended November 18, the Reserve Bank said on Friday. The bank credit grew to Rs 133.29 lakh crore for the fortnight ended November 18 this year as against Rs 113.96 lakh crore on November 19, 2021, the Reserve Bank of India (RBI) said. The deposit growth came at 9.30 per cent, with the overall base Rs 177.15 lakh crore as on November 18 as against Rs 162.06 lakh crore in the year-ago period, it said. Interestingly, amid a war for deposits in the system as banks jostle to raise the liabilities to fund the elevated credit growth, the overall deposits in the system declined marginally during the fortnight as against the Rs 177.88 lakh crore as on November 4. It can be noted that the current fiscal has seen a steady rise in credit growth in FY23 driven by a variety of reasons, including economic growth, borrowers' shift to the bank as against other credit substitutes amid rising interest rates, etc. In