Debt trap: Inside the world of shady digital lending apps, which promise a loan in a minute

According to fintech industry sources, several lenders simply register an entity under the Companies Act, develop an app and start commercial lending. They peddle 7-30-day loans at high-interest rates — often 200-500% annualised. Most of these apps, recent investigations by NGOs and advocacy groups like Cashless Consumer reveal, are Chinese white-labelled apps with Indian names. The apps are mostly hosted on Chinese servers.

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HDFC Bank Q3: Continued growth momentum, provisioning buffer lend comfort

But tiding over hurdles in new credit card origination and management churn, hold key to sustaining premium valuation

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Finmin looks at BIC model after RBI raises concern over zero coupon bonds for PSBs recap

P J Nayak Committee report recommended transferring shares of the government in the banks to the BIC

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HDFC Bank reports 18% jump in net profit to Rs 8,758 crore; gross NPA ratio at 0.81%

HDFC Bank’s net interest income for the previous quarter grew 15.1% to Rs 16,317 crore helped by growth in advances, which was at 15.6%.

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HDFC Bank reports 18% rise in Q3 net profit

HDFC Bank ‘s provisions and contingencies for the third quarter this fiscal rose to ₹ 3,414.1 crore as against ₹ 3,043.6 crore for the quarter ended December 31, 2019

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RBI open to examining bad bank proposal, says Shaktikanta Das; wants lenders to identify risks early

Reserve Bank of India Governor Shaktikanta Das today said that the central bank is open to looking at a proposal around setting up a bad bank.

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Open to look at proposal for setting up bad bank: RBI

Proposals in this direction from as far back as 2016-17 remain only on paper yet

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FD holders vote against DHFL resolution plan proposals

Continuing their demand for full repayment of their investments, fixed deposit holders of Dewan Housing Finance Corporation Ltd (DHFL) voted against

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Non-food credit growth at eight-month high of 6.53%

Analysts expect loan growth in Q3 to have been robust on the back of festive demand and the government’s credit guarantee scheme for small businesses.

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DHFL D-Day: Ajay Piramal wins race to acquire Dewan Housing Finance Ltd

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Piramal wins race to acquire DHFL

Debt resolution proposal got 94% of lenders’ votes

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Banks parked Rs 2 trillion excess cash amid RBI signalling

The cut-off yield, above which banks cannot claim a rate for parking excess cash, was at 3.55 percent. That was higher than the average market expectations, dealers said.

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L&T Finance reports ₹291 crore net profit in Q3

L&T Finance Holdings reported 51 per cent drop in its consolidated net profit at ₹290.66 crore for the third quarter this fiscal from a year ago,

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Forex reserves rise $758 million

The country’s foreign exchange reserves rose by $758 million to reach a record high of $586.082 billion in the week ended January 8, RBI data showed o

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Ajay Piramal wins the most contested bankruptcy bid for Dewan Housing Finance Ltd

Piramal’s bid received about 94 percent of votes of the creditors, followed by Oaktree at 45 percent, sources told ET. Adani Capital obtained about 18 percent, people said people familiar with the voting pattern. Lenders/investors have the option to vote for multiple bids.

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Need to bring govt-owned NBFCs under stricter prudential regulations: RBI

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Universal Sompo ties-up with J&K finance corporation

Universal Sompo chief executive Sharad Mathur said his firm would provide customized general insurance solutions and innovative products for the MSME sector.

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RBI gets overwhelming response to 14-day variable reverse repo auction

The Reserve Bank of India (RBI) received overwhelming response at the 14-day variable rate reverse repo auction it conducted under the revised Liquidi

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Thanks to the govt’s infrastructure push, steel demand to remain firm

But high prices may continue to remain a concern for user industry

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Union Bank chief sees Covid-driven NPAs at 2-3%

Plans ₹2,000 cr to ₹3,000 cr QIP for additional cushion in capital

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ICICI Bank launches new year campaign

Our BureauPrivate sector lender ICICI Bank has launched a new year campaign with offers available on various brands and e-commerce platforms.Called iD

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‘Delinquencies have worsened, but not as bad as initially feared’

The loan restructuring window has just ended, and it will take another 45 days for more clarity on defaults in the housing finance sector, said Mahesh

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PIL seeks regulating online lending platforms; Delhi HC seeks Centre, RBI stand

A bench of Chief Justice D N Patel and Justice Jyoti Singh issued notice to the Centre and Reserve Bank of India (RBI) seeking their stand on the plea which has claimed that such lending platforms charge exorbitant interests on the loans given by them.

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ICICI MF plants 50,000 saplings on behalf of ESG investors

Each investor gets a numbered eTreeCertificate that’s geo-tagged for its location, thus letting investors know of the progress of the sapling

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PSU lenders back Piramal’s DHFL bid

Although there are five eligible bids that creditors are voting on, the bid for DHFL has turned out to be a two-horse race between the Piramal Group and Oaktree Capital.

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Studying The Gap: Only 32% of Indian homes pay digitally, though 68% have smartphones

At the same time, among people that do pay digitally, the use of payment apps is more widespread than that of online banking, the report said.

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RBI’s Financial Stability Report: Private banks’ credit to PSUs grew in 2020, while PSB credit fell

While private banks’ exposure to public-sector units (PSUs) grew in double digits on a sequential basis in March, June and September 2020, PSB credit to this category of borrowers shrank in the June and September quarters.

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India Exim Bank, SBI list foreign currency bonds on INX

Export-Import Bank of India (India Exim Bank) and State Bank of India on Thursday listed their foreign currency bonds aggregating $1 billion and $600

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Power Finance NCDs: It's a good bet for retail investors

These NCDs give investors higher returns than those offered by bank fixed deposits, says PFC chief

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Bad bank should have been set up 3-4 years back, not now: Kotak Securities report

Would have been useful just after AQR or earlier when stress was building up and banks were looking to delay bad debt recognition

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Warburg ups stake in Home First Finance to 30.62%

Warburg Pincus has acquired an additional 5.03 per cent in Home First Finance Company India Ltd, an affordable housing finance company. The stake has

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RBI forms working group to evaluate digital lending

The move is the latest in the central bank’s attempt to tackle fly-by-night lending apps which have been offering digital loans to underserved customers. Of late, these platforms have come under the regulator’s glare for their adoption of coercive means of loan recovery.

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SBI’s FD rate hike may be sign of turn in rate cycle

For the time being, deposits are galloping at 10-11% year-on-year (YoY), while the non-food credit growth languishes at 5-6%. Bankers FE spoke to said the banking system and the money markets are seeing some readjustment in liquidity conditions after the Reserve Bank of India (RBI) signalled restoration of normal liquidity operations last Friday.

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RBI constitutes working group on digital lending

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RBI’s FSDC panel reviews insolvency resolution under IBC

The Sub-Committee of the Financial Stability and Development Council (FSDC) on Wednesday discussed the scope for improvements in insolvency resolution

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Union Bank reduces MCLR

Our Bureau Union Bank of India has reduced Marginal Cost of Funds-based Lending rate (MCLR) by 15 basis points and 5 basis points in the overnight an

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IRDAI's expert committee of doctors and scientists to suggest ways to improve health insurance in India

“Health Insurance in India has grown significantly in recent years and is expected to continue in the coming years,” the regulator said in an order released on Wednesday. The move comes at a time when the government is mulling ways to improve penetration of health insurance in India, which at less than 4% of the GDP is below par compared to most advanced and emerging economies.

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HSBC Bank sees little scope for further RBI rate cuts

Expects retail inflation to tick up this quarter after coming off in December 2020

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RBI sets up panel to suggest measures for promoting digital lending

The working group, chaired by RBI Executive Director Jayant Kumar Dash, will consist of both internal and external members, and submit its report within three months.

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RBI sets up working group to identify risks posed by unregulated digital lending

The Reserve Bank of India (RBI) has set up a Working Group (WG) to study all aspects of digital lending activities in the regulated financial sector a

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RBI forms working group to regulate digital lending through loan apps

“Recent spurt and popularity of online lending platforms/ mobile lending apps (‘digital lending’) has raised certain serious concerns which have wider systemic implications,” the central bank said in a statement on Wednesday.

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BoB raises ₹969 crore via AT-1 Bonds

Bank of Baroda (BoB) has raised ₹969 crore via Basel III-Compliant Additional Tier (AT) 1 Bonds on private placement basis.The bank issued and allotte

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View: A guru and a tycoon feel India’s endless bank salvage pain

The state-dominated lending system’s aggregate balance sheet had a gaping hole even before Covid-19. Now things could turn uglier. The regulator’s latest stress test projects nonperforming assets to jump to 13.5% of loans and advances by September in its baseline scenario, and 14.8% in the worst-case situation, almost doubling from 7.5% a year earlier.

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China-backed AIIB to support Covid vaccine rollout

Bank’s total lending in 2021 to be similar to last year’s

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Payment gateways still charge for UPI, RuPay

According to banking sources, the Central Board of Direct Taxes has directed query to payment service providers on their position with regard to charges for UPI and RuPay card transactions.

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CoinSwitch Kuber closes $15 mn in Series A funding

Aims to grow user base to one crore in 2021

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Your Money: Tech trends that will shape fintech sector in 2021

Fintech has made banking easier as people can now perform all their banking-related tasks remotely from any device that has an internet connection.

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SMA-2 ratio in wholesale segment rose to 7.2% in November from 1.7% in September

A similar accumulation of exposure is seen when gross outstanding at every SMA cohort is compared between August and November 2020.

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RBI imposes Rs 2 crore penalty on Deutsche Bank

The action, the RBI added, was based on the deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. NKD CS NKD ANU ANU

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RBI imposes ₹2-cr penalty on Deutsche Bank

The Reserve Bank of India (RBI) has imposed ₹2-crore monetary penalty on Deutsche Bank for non-compliance with certain provisions of directions relati

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DHFL resolution: FD holders may vote against distribution mechanism

Concerned about the low recovery prospects, a large section of fixed deposit holders, especially those in the retail category, are likely to vote agai

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Karnataka Bank Q3 net profit rises to ₹135 cr

Our BureauKarmataka Bank recorded a net profit of ₹135.38 crore in the third quarter of 2020-21 against a profit of ₹123.14 in the corresponding per

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FSS ties up with India Post Bank to offer doorstep banking services

To serve the unbanked and underbanked population in rural areas

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‘We are continuously exploring opportunities to strengthen our capital base’

Shobha RoySrei Infrastructure Finance, which has been in the eye of the storm lately following a special audit by the Reserve Bank of India, and its

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SSA Finserv raises $3 million from Blue Ashva Capital

SSA Finserv, a non-banking financial company, has raised $3 million from Blue Ashva Sampada Fund to expand its lending operations. The company will u

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KVG Bank inks pact with fintech platform

Karnataka Vikas Grameena Bank (KVGB) has signed a memorandum of understanding with 'Jai Kisan' (a rural-focused fintech platform of Greenizon Agrite

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Caspian Debt partners Villgro to provide debt access to early-stage startups

To support enterprises which ‘face a near impossible task of accessing capital during their early days’

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Dues past 90 days higher in MSME sector than in retail

This is despite the regulatory reliefs provided during the pandemic

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Lower non-Covid health claims silver lining for general insurers

‘But the concern is about a second and third wave as is being seen in many European countries’, says an insurer

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Shubhalakshmi Panse resigns as PNB Housing Finance independent director

Shubhalakshmi Panse, who had served as managing director at Allahabad Bank from October 2012-January 2014, was appointed as independent director of PNB Housing Finance Ltd (PNBHFL) in July 2017.

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How to plan a financially secure retirement life?

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Real bank stress may be hidden by easy liquidity: RBI's Shaktikanta Das

The extraordinary easy liquidity policies of the Reserve Bank of India (RBI) have helped banks report strong financial parameters but these numbers do not necessarily reflect the true stress in the system due to the pandemic, governor Shaktikanta Das said.

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PSU banks improve credit growth in September

The central bank had earlier allowed restructuring of personal and corporate loans impacted by Covid-19.

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RBI report: Loan losses at banks could double by Sept 2021

The system level capital to risk-weighted assets ratio (CRAR) is projected to drop to 14% in September 2021 from 15.6% in September 2020 under the baseline scenario and to 12.5% under the severe stress scenario.

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MF inflow more than doubles in H1 of this fiscal

The net inflow into mutual fund schemes more than doubled in the first half of this fiscal to ₹1.5-lakh crore against ₹60,000 crore garnered in the sa

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RBI FSR: Bad loans can rise to 13.5% by Septemberas regulatory reliefs are rolled back

Need of the hour is for banks to assess their respective stress situations and follow it up with measures to raise capital proactively, says RBI chief

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NBFCs may have lower bad loan ratios than banks yet challenges remain

Bad loans for banks may rise to 14.8% under severe condition, Reserve Bank of India said. NBFCs’ bad loan ratio was 6.8% at the end of September 2020 while that for banks was at 7.5%.

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RBI FSR: Bad loans can rise to 13.5% by Septemberas regulatory reliefs are rolled back

Need of the hour is for banks to assess their respective stress situations and follow it up with measures to raise capital proactively, says RBI chief

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Banks gross NPA may rise to 13.5 pc by Sep 2021: RBI FSR

If the macroeconomic environment worsens into a severe stress scenario, the GNPA ratio may escalate to 14.8 per cent, the report said.

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Risk aversion, muted demand continue to weigh on wholesale credit growth

Credit offtake to corporates that remained subdued in the first half of fiscal 2020-21 was weak in the third quarter, too (up to November 2020), point

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Banks gross NPA may rise to 13.5 per cent by Sept this year: RBI

Banks' gross non-performing assets may rise to 13.5 per cent by September 2021, from 7.5 per cent in September 2020 under the baseline scenario, acco

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Sharp decline in CIRP cases in Q1 and Q2 due to temporary suspension

Only 161 cases were admitted for Corporate Insolvency Resolution Process in the first half of this fiscal year due to the temporary suspension of the

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Life insurers bet on guaranteed return products to woo customers

KR SrivatsAmid the trying pandemic times and low interest rate environment, private life insurers are seeing opportunity and pushing protection produc

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Debenture holders of Reliance Capital approve asset monetisation proposal

On Oct 31, Reliance Capital had floated an EoI for selling stake in its arms as part of the process to pay off its dues to creditors and become debt-free

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Volkswagen Finance acquires majority stake in digital lending platform KUWY

The Volkswagen Group’s financing arm had first bought a 25% equity stake in the latter in September 2019. KUWY Technology is an instant lending platform that digitally connects borrowers to lenders.

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Axis Bank announces no penalty on premature closure of term deposits

“The objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity,” the bank said in a statement.

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City Union Bank launches 'WhatsApp Banking'

City Union Bank (CUB) announced that it has launched 'WhatsApp Banking' - taking the digitisation journey for its customers to the next level. In a p

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Bank hard-sell & cheaper loans drive auto financing

Auto financiers and dealers say the current buzz is led by the aggression of PSU lenders, which are offering rates lower than private financiers. However the uptick is restricted only to passenger vehicles and not two-wheelers and commercial vehicles.

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“We are building SBFC with an aspiration of being a bank one day”

This means compliance and governance of bank standards from Day One, says Mahesh Dayani, Chief Business Officer

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Sahoo panel hopes govt will soon say ‘yes’ to pre-packs

IBBI Chairman recommends the simplest variant of pre-packaged insolvency resolution process

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Life insurance sector's new business premium declines 3 per cent in December

The country's largest life insurer LIC contributed Rs 14,345.70 crore or 58 per cent to the total premium generated during the month, showed data from the Insurance Regulatory and Development Authority of India (Irdai).

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RBI raises concerns over zero-coupon bond for PSB recapitalisation

The government resorted to recapitalisation bonds with a coupon rate for capital infusion into PSBs during 2017-18 and interest payment to banks for holding such bonds started from the next financial year.

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