RBI tightens norms for consumer loans amid rise in unsecured lending
The Reserve Bank of India has asked institutions to increase the risk weights with respect to consumer credit exposure of commercial banks by 25 per cent to 125 per cent, merely a month after flagging the high growth in certain components of consumer credit and asking NBFCS, banks to strengthen internal surveillance mechanisms.

RBI slaps fines on Axis Bank, Manappuram Finance
Mumbai: The Reserve Bank on Thursday imposed a monetary penalty of Rs 90.92 lakh on Axis Bank and Rs 42.78 lakh on gold loan firm Manappuram Finance for violation of certain directions of the banking sector regulator. The fine has been imposed for non-compliance with certain directions issued by the RBI on 'Reserve Bank of India (KYC) Directions, 2016', 'Loans and Advances - Statutory and Other Restrictions', 'Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks', and 'Code of Conduct for Opening and Operating Current Accounts', the central bank said in a statement.

RBI hikes risk weights on unsecured bank, NBFC loans by 25 bps
Mumbai: In response to the unprecedented growth in unsecured retail loans and the consequent concerns regarding rising systemic risk, the Reserve Bank of India has increased the risk weights on unsecured consumer loans, including credit cards, by 25 bps for both banks and NBFCs.

RBI increases risk weights in attempt to slow down consumer loan growth

The Reserve Bank of India (RBI) has put the brakes on the unbridled growth in unsecured loans by increasing the capital requirements for such loans and mandating that boards come up with a policy on retail loans and monitor it strictly.

IDBI Bank stake sale may not be completed by March
Mumbai: The stake sale in IDBI Bank may not be completed by March 2024, a senior government official said on Thursday.

IDBI Bank disinvestment unlikely this fiscal: Dipam secretary
Mumbai: Dipam secretary Tuhin Kanta Pandey said on Thursday that the government’s disinvestment in IDBI Bank is unlikely to get completed before the end of this financial year. “The transaction is conditioned on several factors. There is a fit and proper examination by the RBI, there is due diligence to be done and then the financial criteria. So it depends upon how much time all of these things take. RBI sometimes seeks a lot of information,” said Pandey. The government and LIC own a 61 per cent stake in IDBI Bank. LIC recently invited bids for asset valuers.

In digital age, banks overlook 142-year-old rule for cheques
Mumbai: As banks and businesses continue to adopt efficient processes, they tend to forget that the law doesn’t evolve as quickly.
 

Uco Bank says account holders have received ‘erroneous credits’ on payment system due to technical issue
Kolkata: State-run Uco Bank has said some of its account holders had received “erroneous credits” via its Immediate Payment Service (IMPS) as a result of an internal technical issue. IMPS is an interbank electronic fund transfer service that allows account holders to send and receive money instantly on their mobile phones or by using internet banking facilities.

Bank of Baroda board meeting tomorrow to discuss fundraising for infrastructure and affordable housing
Bank of Baroda has scheduled a meeting of the Capital Raising Committee tomorrow, November 18, 2023, to discuss and finalise the issuance of Tier I and Tier II debt capital instruments and long-term bonds for the financing of infrastructure and affordable housing within the board-approved capital raising plan.

Uco Bank yet to recover Rs 171 crore of Rs 820 crore credited wrongly to account holders

A massive technical glitch in Uco Bank's IMPS payment system has led the state-owned lender erroneously crediting Rs 820 crore to some of its account holders ahead of Diwali forcing it to report the matter to law enforcement agencies.

Two Japanese banks set to start operations in GIFT City: IFSCA chief
Singapore: Two more Japanese banks are set to join 10 foreign and 16 local banks in the tax-free GIFT City, where more than 550 businesses with assets worth USD 47 billion have registered and begun operations, an official said.. This marks a significant expansion of the GIFT City's financial sector, which is expected to play a key role in India's economic growth, International Financial Services Centres Authority (IFSCA) chairman K Rajaraman said here.

Cashback, discounts and rewards: The benefits of co-branded credit cards
When it comes to credit cards, selecting the right one can significantly impact how you manage your finances. Co-branded credit cards stand out as a distinctive and increasingly popular choice for consumers. One of the biggest advantages for cardholders is the exclusive rewards and discounts. These features are fine-tuned to align with your specific preferences, enabling you to maximize the value of your regular expenditures, whether they are related to travel, shopping, dining, or entertainment. The key is to choose a co-branded credit card that seamlessly complements your interests and spending habits.

RBI tightens norms, raises risk weights for personal loans and credit cards
After cautioning banks and non-banking financial companies (NBFCs) on surging unsecured loans like personal loans and those on the credit card, the Reserve Bank of India (RBI) on Thursday increased the risk weighting for such loans from 100 per cent to 125 per cent.  

Indian banks’ NPAs to drop to 3.5%, net interest margin to 2.9% by FY25: S&P Global
New Delhi: Indian banks’ weak loans (better known as non-performing assets or NPAs) is projected to drop to 4.5 per cent at the end of Fiscal Year 2023-24, and to 3.5 per cent at the end of Fiscal Year 2024-25, S&P Global said on Thursday. It does not expect interest rates to rise much in the near future.

Manappuram Finance expects gold loan AUM to grow 10% annually: MD
VP Nandakumar, MD & CEO, Manappuram Finance, says “along with our gold loan portfolio, we are growing our secured MSME, commercial vehicles portfolios because we have a very large customer base both in Manappuram and the subsidiaries. In these secured segments, our penetration compared to our potential has come to only one-fifth.”

RBI diktat may dent Bajaj Finance’s PAT
The Reserve Bank of India’s (RBI) decision to ban Bajaj Finance’s two products —‘eCOM’ and ‘Insta EMI Card’ — with immediate effect on Wednesday could dent the non-banking finance company’s (NBFC) bottomline by 6% till it is revoked, analysts say.

Manappuram, Anand Rathi Global Finance face monetary penalty for non-compliance
The Reserve Bank has imposed monetary penalties on Manappuram Finance and Anand Rathi Global Finance for deficiencies in regulatory compliance.

RBI gives approval to appoint Isha Ambani, two others as directors of Jio Financial
New Delhi: Jio Financial Services on Thursday said the Reserve Bank has granted prior approval to appoint Isha Mukesh Ambani and two others as directors of the Reliance Industries' NBFC firm. "We wish to inform you that the RBI vide letter dated November 15, 2023, has accorded its approval for the appointment of Isha Mukesh Ambani, Anshuman Thakur and Hitesh Kumar Sethia as directors of the company," Jio Financial said in a regulatory filing.

NBFC assets to grow 25-30 pc in FY24 and FY25; unsecured loans need monitoring: Icra
Mumbai: Non-bank lenders are set to report growth of 25-30 per cent in their Assets Under Management (AUMs) in FY24 and FY25, a domestic rating agency said on Thursday. Icra Ratings, which made the growth estimate for Non-Banking Financial Companies (NBFCs) having AUMs of up to Rs 10,000 crore, said unsecured loans need to be monitored going forward.

Bajaj Finance under RBI scrutiny: Brokerages’ views, stock outlook, and long-term prospects
Jefferies advised a ‘Buy’ on Bajaj Fin with a target of ₹9,470. However, RBI’s unexpected directive halted loan sanction and disbursal for two digital loan products, posing a negative impact. The swift correction pace is crucial for product reinstatement. Despite this setback, the financial impact seems limited, as the Insta EMI Card base accounts for only 5% of total clients, estimating the base at 0.2% of disbursals.

From Singh Brothers to Burman brothers, Religare's promoter blues continue
It seemed Religare Enterprises Ltd (REL), a financial services company with several subsidiaries, had bounced back from the crisis triggered by the arrest of its former promoters Malvinder and Shivinder Mohan Singh in 2019. After it got a new board and management, REL stock price went up more than 10 times since March 31, 2020 when it was at Rs 19. But nearly three years later, REL is again in the news for the wrong reasons.

Decoding Bajaj Finance Loan Ban: What RBI's ban may cost the business and stocks

Reserve Bank of India (RBI) has barred Bajaj Finance, India's largest consumer financier, from sanctioning and disbursing loans under two of its lending products – ‘eCOM’ and ‘Insta EMI Card’ citing non-issuance of key fact statements (KFS) to the borrowers under these two lending products and deficiencies in the KFS for other digital loans of the company.

Ban on Bajaj Finance products: What it means

Reserve Bank of India (RBI) has barred Bajaj Finance, India's largest consumer financier, from sanctioning and disbursing loans under two of its lending products - 'eCOM' and 'Insta EMI Card' citing non-issuance of key fact statements (KFS) to the borrowers under these two lending products, and deficiencies in the KFS for other digital loans of the company.

NBFC-MFIs’ portfolio quality improving, NPAs fall in FY23: MFIN report
Portfolio at Risk (PAR) for NBFC-MFIs (microfinance institutions) has gradually improved post-pandemic, with over 30-day PAR falling from a peak of 22.44 per cent in June 2021 to 10.5 per cent in March 2023. MFIs gross NPA fell to 2.7 per cent in FY23 from 5.6 per cent in FY22 and 5.2 per cent in FY21, according to Microfinance Industry Network (MFIN)’s India Microfinance Review for FY23 titled ‘Micro Matters: Macro View’.

‘We will tailor our gold loans to suit regional needs, sensibilities’
Indel Money, a non-banking financial company, plans to raise funds in the third quarter of the current financial year to support its expansion and innovation efforts. Umesh Mohanan, Executive Director and CEO, says the company wants to invest in technology upgrades, branch expansion in existing markets, and new branches in untapped territories.

What are the pros and cons of linking your credit card with UPI?
The Unified Payments Interface (UPI) serves as a real-time payment system facilitating seamless fund transfers between two bank accounts through a mobile app. In India, UPI has gained immense popularity, evident from the staggering figure of over seven billion transactions processed in September 2023.

UPI adds a billion transactions in two months, hits 11 bn mark amid festive season: RBI Bulletin
The Unified Payments Interface (UPI) added another billion to reach 11 billion transactions in a short span of two months—the quickest addition of a billion—to date, the Reserve Bank said on Thursday in its monthly bulletin.

India offers UPI tech cooperation to Seychelles
New Delhi: India has proposed technological cooperation to Seychelles on Unified Payments Interface (UPI), according to persons aware of the matter. 

Equity markеt holds immеnsе potеntial for futurе growth: Ravi Singhal, GCL Broking
Thе brokеragе industry facеs sеvеral challеngеs, including nеw rеgulatory rеquirеmеnts that havе significantly incrеasеd operational and tеchnology costs. Thе risе of discount broking has also еrodеd profit margins. Unlеss SEBI providеs somе rеliеf in tеrms of fund-rеlatеd compliancеs, thе survival of many brokеrs in thе futurе could bе jеopardizеd, says Ravi Singhal, CEO, GCL Broking.

Brokers post strong Q2 results riding record stock rally

Profits of listed stock brokers surged in tandem with a record-breaking stock market rally in the September quarter from the same period a year ago led by addition of more clients and higher trading activity.

It’s raining money, as crypto firms take the world of sports by storm
The mainstream influence of cryptocurrencies seems to suggest that it  can contribute beyond the financial domain. Post breakthroughs in cryptocurrency and blockchain prospects, businesses started tapping into cryptocurrencies’ potential for sponsorship strategies. As per numbers provided by Euromonitor International, a market research and intelligence firm, crypto sponsorships witnessed an upward trend in 2020-21 by recording a 900% rise across global top-flight competitions. In the same period, the crypto/property sponsorship ratio increased averagely from five percent to 59%, which implies that cryptocurrencies can offer more than it meets the eye. “Post 2021, I believe the global surge in cryptocurrency adoption has witnessed collaborations between crypto platforms and sports and entertainment figures. This shift aims to mark a departure from cryptocurrencies’ niche status to becoming avenues for endorsements and partnerships. Although this trend is yet to gain traction in India, the potential for its emergence looms with regulatory clarity,” Edul Patel, CEO, Mudrex, a crypto-investing platform, told FE TransformX. 

Binance to start Thai crypto exchange with billionaire Sarath
A joint venture between Binance Holdings Ltd. and Gulf Energy Development Pcl plans to roll out a crypto exchange in Thailand early next year after winning licenses from the nation’s regulator.

We believe the majority of rate hikes is behind us: Aakash Desai, CIO & Head, Private Credit at 360 ONE Asset
Bain Capital-backed 360 ONE Asset Management has received an overwhelming response to its private credit fund. In an interview with businessline, Aakash Desai, CIO & Head, Private Credit at 360 ONE Asset, throws some light on the industry.

FPIs' investment value in Indian equities rises 15% to $651 bn in September quarter
The value of foreign portfolio investors' holdings in domestic equities reached $651 billion in the three months ended September 2023, which was 15% higher than the year-ago period, according to a Morningstar report.

FIIs buy Indian equities for 2nd straight day, invest ₹957.25 crore; DIIs purchase ₹705 crore
Foreign Institutional Investors (FII), on Thursday, snapped their selling streak by purchasing worth ₹13,546 crore amid festive season after the stock market ended on a higher note for second day straight.

Edelweiss Alternatives aims to raise up to Rs 5,000 cr via rental yield fund

Bengaluru | Mumbai: Edelweiss Alternatives, the alternative asset arm of the Edelweiss Group, plans to raise up to ₹5,000 crore from both onshore and offshore investors through its new rental yield plus fund, said a senior company executive.