CARD91 raises $13 million in Pre Series A funding

CARD91 is an end-to-end solution for businesses that want to roll out their own Card programs. from The HinduBusinessLine - Money & Banking https://ift.tt/Uq1xB...

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CSB Bank reports 9 per cent increase in deposits in Q4 FY22

Gross advances rose to ₹15,998.02 as at March 31, 2022 from The HinduBusinessLine - Money & Banking https://ift.tt/yR0P5...

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Karnataka Bank’s CASA deposits reach 32.97%

from The HinduBusinessLine - Money & Banking https://ift.tt/CQ9ud...

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The merger has whetted our risk appetite: Shanti Lal Jain, MD & CEO, Indian Bank

Indian Bank has witnessed growth in income streams as well as higher cash recoveries in FY22. Shanti Lal Jain, MD & CEO, tells Sajan C Kumar the bank is looking to expand its RAM segment further by leveraging its branches, tying up with NBFCs for co-lending and introducing end-to-end digitisation for MSME and retail products. Excerpts: Indian Bank reported a 34% y-o-y jump in net profit in the third quarter, mainly on account of higher income and cash recovery. Do you think the momentum is sustainable? This was made possible due to an increase in net interest income and growth in non-interest income in segments like fee income, forex income and PSLC commission, besides higher recovery of...

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UPI crosses 500 crore milestone in terms of volume in March

Over 17 crore payments worth over ₹20,000 crore have been made via UPI on a daily basis from The HinduBusinessLine - Money & Banking https://ift.tt/hJZRt...

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RBI expected to maintain easy policy with focus on boosting growth

Likely to hold rates steady even as inflation picks up from The HinduBusinessLine - Money & Banking https://ift.tt/JzI25...

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‘We’re seeing signs of a recovery — sector by sector, company by company’

Even as global banks are exiting various businesses, HSBC is investing in a market like India across segments. In a conversation with Malini Bhupta, HSBC India’s CEO Hitendra Dave says he is looking to fortify the bank’s position as the leading bank for Indians with international interests. Excerpts: The pandemic has had a far-reaching impact on consumer behaviour and businesses. How has banking been affected by it? The pandemic certainly caused an unprecedented degree of disruption, with a severe impact on the global economy. It tested the resilience of business models of companies and brought into sharp focus aspects related to global supply chains and the reshaping of supply chain ecosystems....

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RBI focused on growth, seen lagging on inflation fight

Inflation is picking up in India, but the country's central bank is likely to maintain its loose policy even as its global peers raise rates, potentially forcing it to play catch-up aggressively later, economists and analysts say. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/oYiNb...

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UPI transactions cross $1-trillion mark in FY22

The value of Unified Payments Interface (UPI) transactions crossed $1 trillion in FY22, showed data released by the National Payments Corporation of India (NPCI). As on March 29, the value of UPI transactions for the year added up to Rs 83.45 trillion, which works out to roughly $1 trillion. The number of UPI transactions as of March 29 stood at 45.6 million. The usage of UPI as a payment channel has grown exponentially over the last few years, and is set to increase further as payments for feature phone users gets enabled. In a recent report,...

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Customer, employee retention key to success of Axis-Citi deal, say analysts

The acquisition of Citi’s Indian consumer business is a positive for Axis Bank, but the lender will have to succeed in retaining Citi’s customers and personnel in order for the deal to yield benefits, analysts said on Thursday. While most analysts took the view that the deal was reasonably valued, a few saw it as expensive. Axis Bank intends to acquire Citi India’s credit cards, lending and wealth management businesses for Rs 12,325 crore, subject to regulatory approvals. It will shell out another Rs 1,500 crore in transition costs, most of which will go to Citi to handhold their customers over a two-year transition period. Macquarie Capital Securities said that the deal will be return on assets...

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Deal to strengthen lender’s position in credit cards business

After growing organically, Axis Bank has acquired the consumer business of Citibank. The senior management of Axis Bank broke the deal contours down on Wednesday. Done deal The purchase considerations, subject to customary and contractual adjustments at the closing date for the proposed acquisition are up to 12,325 crore, translating to a price to earnings multiple of 18.7 times based on normalised CY20 standalone earnings of this business. Portfolio of assets Citi bank has a complementary portfolio of 2.5 million cards, with amongst the highest monthly spends per card across the industry and a book size of approx 8,900 crore as of June 2021. This will strengthen its position as a top three...

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Axis Bank to acquire Citi’s consumer biz for $1.6 billion

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/iY9Cr...

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Payment apps are cornering the SME sector. What can India's old-fashioned lenders do?

There are several juggling acts going on here, apart from the millions of small businesspeople reconciling their accounts across the many services that have sprung up as an alternative to cash and plastic. from Banking/Finance-Industry-Economic Times https://ift.tt/MCrht...

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HDFC Bank targets 1 million new credit cards through Shoppers Stop tie-up

HDFC Bank is targeting the acquisition of 1 million new credit card customers over the next three-four years through a co-branded partnership with retail chain Shoppers Stop, the bank said on Wednesday. The tie-up is among a series of launches by the bank after the lifting of a regulatory embargo on fresh credit card issuances in August 2021, and is being seen as its answer to ICICI Bank’s partnership with e-commerce biggie Amazon. HDFC Bank, the largest player in the credit card space, had an outstanding credit card base of 16.3 million in February 2022, while ICICI Bank had 12.8 million cards, stated data from the Reserve Bank of India (RBI). Analyst estimates peg the share of Amazon Pay cards...

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Deal value to be re-assessed if attrition is higher: Axis Bank

Ever since Citibank announced its intention to exit the consumer business across markets, private lenders in India have been chipping away at its customer base. The global bank has consistently been losing customers and this has worried analysts and investors. After Axis Bank negotiated the deal in June 2021, Citi has continued to lose customers. During a call with analysts on Wednesday, Axis Bank’s top management said the private lender had factored in a conservative attrition rate and that if the portfolio lost more customers, then the deal price would be renegotiated. Addressing queries from analysts on the impact of sustained attrition on the deal value, Amitabh Chaudhry, CEO of Axis Bank,...

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Roadshows grab investors’ interest: EoI for IDBI Bank sale to be floated in April

Encouraged by the feedback from potential investors in the recent roadshows, the Centre will likely seek expression of interest (EoI) for the sale of its stake in IDBI Bank in April, a senior official told FE. “We have held pre-EoI roadshows to gauge investors’ interest recently and some more such events will be held in the coming days,” he said. In May 2021, the Cabinet Committee on Economic Affairs approved the strategic disinvestment of the Centre’s and LIC’s stakes in IDBI Bank along with the transfer of management control. As per the plan, the government will exit the bank by divesting its entire 45.48% stake worth about Rs 21,000 crore at the current market prices. Promoter Life Insurance...

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Axis Bank snaps up Citi’s consumer biz for $1.6 billion; deal may be closer in 9-12 months

Axis Bank on Wednesday announced its acquisition of Citi India’s consumer businesses for Rs 12,325 crore. Apart from the credit card business, the deal includes Citi’s consumer loans portfolio, retail banking assets and wealth management business. The deal, which will give Axis Bank access to three million new customers, is likely to be closed over the next 9 to 12 months, subject to regulatory approvals. The acquisition will bolster Axis Bank’s presence across segments, with its credit card business benefiting the most. Axis Bank’s cards balance sheet will grow 57% with the addition of 2.5 million Citi cards. While Axis Bank will continue to hold the fourth spot in terms of cards in force,...

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Lok Sabha approves accountancy Bill: FM says changes won’t impact autonomy of institutes

The Lok Sabha on Wednesday approved a Bill to rejig the functioning of the institutes of chartered accountants, cost accountants and company secretaries. The Chartered Accountants, Cost and Works Accountants and Company Secretaries (Amendment) Bill seeks to appoint non-chartered accountant (CA), non-cost accountant and non-company secretary as the presiding officer of the disciplinary committees of the respective bodies. Union finance and corporate affairs minister Nirmala Sitharaman asserted that the changes will not infringe upon the autonomy of these bodies. It will enhance the quality of audit and improve the country’s investment climate, the minister said. The three institutes are the Institute...

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SBI exploring new ways to resolve retail loan stress

SBI, which is India's largest lender by assets, had gross non-performing assets of 1,200 billion rupees at the end of December, representing 4.5% of its loan book, of which retail loans accounted for more than 619 billion rupees. from Banking/Finance-Industry-Economic Times https://ift.tt/RdSEj...

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Bank of Russia, RBI to ready framework for trade, banking

Since the creation of a rupee-rouble exchange channel is likely to feature in the talks, the team of officials from Moscow may also include representatives from Russia's financial sector. from Banking/Finance-Industry-Economic Times https://ift.tt/L5xsp...

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Microfinance industry witnesses 10% rise in gross loan portfolio at Rs 2.56 trillion in Q3FY22

The country’s overall microfinance industry witnessed around 10% year-on-year rise in its total gross loan portfolio (GLP) to Rs 2.56 trillion for the third quarter this fiscal from Rs 2.32 trillion for the same period last fiscal, industry body MFIN said on Tuesday. As on December 31, 2021, thirteen banks held the largest share of portfolio in micro-credit with total loan outstanding of ` 1.03 trillion, which was 40.4% of total micro-credit universe. “NBFC-MFIs are second largest provider of micro-credit with a loan amount outstanding of Rs 87,444 crore, accounting for 34.2% to total industry portfolio. Small finance banks (SFBs) have a total loan amount outstanding of Rs 42,847 crore with...

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At 7.43%, states debt cost shoots over the roof at the last auction of FY22

In FY22, borrowings by Bihar, Haryana, Manipur, Sikkim, Telangana and Bengal were higher than the previous fiscal as Telangana, Haryana, Bihar and Bengal saw a revenue deficit in the April-January whereas Sikkim has borrowed more despite a revenue surplus. Odisha has not raised any money from the market at all in FY22, while it had raised Rs 3,000 crore last fiscal.At the final auction of state debt of FY22, 15 states raised Rs 30,900 crore, 24 per cent higher than the amount that had initially been indicated for this week. from Banking/Finance-Industry-Economic...

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IL&FS resolution under Kotak completes Rs 61,000 crore of Rs 99,355 crore debt

Of the total 347 entities, 248 have been resolved, Kotak said, adding, the group had over 100 entities overseas and of the remaining 101 entities some are defunct and only the government can take a call on them. from Banking/Finance-Industry-Economic Times https://ift.tt/AmdYS...

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HDFC Bank to acquire 15% stake in IDRCL

ICICI Bank had on Monday announced that it signed a similar agreement to acquire 15 per cent stake in IDRCL. from The HinduBusinessLine - Money & Banking https://ift.tt/eN1Uj...

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Nabard Employees Association to hold demonstration in front of headquarters today

Extend their support to the ongoing nationwide strike by the Central trade unions from The HinduBusinessLine - Money & Banking https://ift.tt/pOi9L...

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4 reasons to invest in ELSS funds

ELSS funds can acquire returns that are twice or more than a usual savings scheme. from Banking/Finance-Industry-Economic Times https://ift.tt/Tw6mj...

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NBFC-MFIs to gain from RBI’s revised norms: Crisil

The Reserve Bank of India (RBI)’s revised framework for microfinance loans will engender ‘greater harmonisation’ in the business landscape of different types of lenders, enhance operational flexibility of NBFC-MFIs and support their profitability, rating agency Crisil said on Monday. Krishnan Sitaraman, senior director and deputy chief ratings officer, Crisil Ratings, said: “The last two years have been extremely challenging for microfinance lenders as they grappled with high credit costs. The changes announced will help NBFC-MFIs adopt risk-based pricing and improve their profitability, expand their addressable market and also address concerns on over-indebtedness of borrowers. These augur...

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Federal Bank sees multiple opportunities in fintech tie-ups

With active support from its fintech partners Fi and Jupiter, Federal Bank is able to open 13,000-14,000 savings accounts per day — more than three times the figure done through organic sourcing. The Kerala-based lender believes that rather than competition, collaboration with fintechs will create the best experience for customers, and provide opportunities to cross-sell and up-sell. Shalini Warrier, executive director of Federal Bank, told FE that fintechs are agile and nimble and are equipped with the latest technology. They can provide the best of hyper-personalised customer experience with the use of artificial intelligence, machine learning and other modern technologies. “We currently have...

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Indiabulls Housing to raise Rs 50,000 crore growth capital next fisc, eyes 20% loan sales

The lender's outstanding loan book stood at Rs 74,800 crore as of end-February, which is flat at the previous year's level and if it grows by the upper end of the target it may close the next fiscal with around Rs 90,000 crore of loan book/AUM. from Banking/Finance-Industry-Economic Times https://ift.tt/KvuPz...

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80% microfinance customers showing good credit behavior in spite of pandemic: Suryoday Small Fin Bank MD Babu

The uniform microfinance guidelines along with the higher digital penetration would change the contour of microfinance in India in line with what happened in most Asian countries, says Suryoday Small Finance Bank Managing Director R Baskar Babu. He expects the market to evolve into an interest rate sensitive one where a customer would choose a lender based on loan pricing. from Banking/Finance-Industry-Economic Times https://ift.tt/a436G...

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What happens if you default on your education loan?

Education loans usually come with a moratorium of 6-12 months once the course is completed. Repayment typically begins a year after the completion of the course or within six months of getting a job, whichever is earlier. During the course period, the bank charges simple interest rate on the loan. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/9DNJe...

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Recent IBC changes dealing effectively with NBFC insolvency issues, says FM Sitharaman

Govt for now not seeing need for modified FRDI Bill to set up Resolution Corporation from The HinduBusinessLine - Money & Banking https://ift.tt/GscIt...

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Tata Capital's PE fund raises Rs 955 crore to be invested in pharma, healthcare sectors

The Tata Capital Healthcare Fund II (TCHF II) achieved a final closure of its fund with investor commitments of Rs 955 crore or USD 126 million, a statement by Tata Capital said. The offering is a follow-up to the Tata Capital Healthcare Fund I which had raised Rs 411 crore in 2012. from Banking/Finance-Industry-Economic Times https://ift.tt/itunQ...

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Tata AIA Life expects total premium income to cross Rs 14,000 cr in FY22, says Naveen Tahilyani, CEO

"We grew at 32 per cent in the first nine months of this fiscal and close to 40 per cent in the first ten months of the year. So, I expect to close the year with about 35 per cent business growth in new business premium and about 30 per cent growth in total premium. Our total premium should certainly cross Rs 14,000 crore this year," Tahilyani said. from Banking/Finance-Industry-Economic Times https://ift.tt/RJ6rL...

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Banks should offer specific credit schemes for MSMEs in Kerala: Minister Rajeeve

Adeeb Ahamed of Lulu Financial Holdings receives Banking Excellence & Businessman of the year award from SFBCK  from The HinduBusinessLine - Money & Banking https://ift.tt/OHqZg...

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Unions' strike partially impacts banking services

Transactions at many public sector banks have been impacted as employees have not reported for duty. Besides, there might be a delay in cheque clearances and government treasury operation might also be affected by the strike. from Banking/Finance-Industry-Economic Times https://ift.tt/ktlLd...

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Unions' strike partially impacts banking services

Banking services were partially impacted on Monday as a section of bank employees did not report for duty in support of the two-day nationwide general strike called by central trade unions. However, there was hardly any impact on the functioning of new generation private sector banks. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/qNo7y...

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Bank of Maharashtra bags best bank award from Kerala bankers' body

The bank has entered into the mid-sized bank category after declaring its Q3 FY22. from The HinduBusinessLine - Money & Banking https://ift.tt/DVis4...

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Bank of Maharashtra bags best bank award from Kerala bankers' body

The award for 2020-21 was given to the bank upon analysing performance with a 360-degree view on various business parameters with a scoring model, it said, adding, the parameters included growth in deposits, advances, net profit, capital adequacy, credit deposit ratio, quality of assets, profit per employee and return on assets. from Banking/Finance-Industry-Economic Times https://ift.tt/Wl9a3...

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LVB-DBS merger: SC directs transfer of all cases

In a victory to the minority shareholders of erstwhile Lakshmi Vilas Bank (LVB), the Supreme Court has accepted their plea to transfer all the cases relating to the bank’s merger with DBS Bank of India, a subsidiary of DBS Bank, Singapore, to Madras HC. Rejecting the pleas by RBI and DBS Bank management, for transferring all the cases to Mumbai High Court, the SC bench of BV Nagarathna in its March 21 order directed that the writ petitions pending before the various high courts ought to be transferred to the high court of judicature at Madras, wherein the writ petitions are already pending for final hearing. It is noted that the head office of erstwhile LVB is at Karur at Tamil Nadu. The Bench...

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SBI services could be impacted after unions call for strike on March 28, 29

The unions are opposing the government's decision to privatise public sector banks, as well as their moves regarding the Banking Laws Amendment Bill 2021. from Banking/Finance-Industry-Economic Times https://ift.tt/jvlEO...

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Total credit cards now at 71.7 m, highest in 21 months

India’s banking system reported net additions of approximately 1.5 million credit cards in February, up 165% y-o-y taking the total base to 71.7 million, the highest in the past 21 months, according to brokerage Motilal Oswal. Spends on credit cards increased by strong 43% y-o-y during the month and the outstanding number grew by about 16% y-o-y. Axis Bank acquired around 248,000 of the new cards and, together with HDFC Bank, was among the best performers during the month. Interestingly, Citibank saw a fall of around 7,000 cards in its base; Standard Chartered Bank and American Express too reported a drop in their card bases. Media reports have suggested that Axis Bank is looking to acquire...

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