Finance Ministry asks PSU banks to take measures to strengthen cybersecurity
The Finance Ministry has asked state-owned banks to review systems and processes related to their digital operation in view of the recent UCO Bank incident. According to sources, the banks have been advised to check their cybersecurity robustness and take measures to strengthen them. Banks should keep a tight vigil, and there should be readiness for future cyber threats, sources said. The Finance Ministry and RBI have been sensitising banks on this aspect at regular intervals amid the growing digitisation in the financial sector.

MFIN wants RBI to address overlap between microfinance, digital lending
Mumbai: Microfinance Institutions Network (MFIN) has called on the Reserve Bank of India to review and address the overlap between microfinance and digital lending. MFIN wants the RBI to ensure that fintech lenders comply with microfinance regulations, and failing to do so would lead to weak underwriting and customer protection. Further, the data should be reported to the microfinance bureau and not the retail credit bureau, and the central bank should review their interest rates and recovery practices.

Former RBI Governor S. Venkitaramanan passes away at 92
Former Governor of the Reserve Bank of India (RBI) S. Venkitaramanan (92),  passed away at a private hospital in Chennai on the morning of November 18 due to age related issues. 

RBI approves Hinduja Group entity acquisition of Reliance Capital
 

RBI takes stock of high attrition in private banks
Top officials at the Reserve Bank of India have stated engaging with bank chiefs to understand the cause of unusually high employee attrition, especially among private banks. “Attrition seen in FY23 was way beyond the last five year’s average and this is not good for the sector in the long run. How do you build succession and third layer of leadership if this is the case,” said a highly placed source aware of the matter. “Hence the central bank has started engaging with private banks to understand what’s going wrong for them.”

Dissecting corporate India’s half-full quarter
Lower credit costs boosted the profitability and consequently the net interest margins of banks, with State Bank of India maintaining a distinct lead. Bank profits, excluding HDFC Bank, rose 22 per cent in the quarter. Repricing of deposits lessened the pressure on some banks such as IndusInd Bank, Axis Bank and SBI compared to ICICI Bank and Kotak Bank.

Loan growth to decline by over 5%
The Reserve Bank of India’s (RBI) decision to increase risk weights is expected to reduce the enthusiasm amid banks and non-banking financial companies (NBFCs) to extend unsecured loans, said bankers and industry players.

ESAF Small Finance Bank’s net profit up by 143%
Kochi: ESAF Small Finance Bank has reported a net profit of ₹140.12 crore in the second quarter of the financial year 2023-24, registering a y-o-y growth of 143.35 per cent. The net operating profit for the quarter is ₹289.65 crore, an increase of 37.39 per cent over the revenue recorded in the corresponding period of the previous year. Total business reached ₹34,906 crore registering a growth of 32.81 per cent, while total deposits increased from ₹13,520 crore to ₹17,416 crore, up by 28.82 per cent. The Advances Under Management (AUM) grew by 37.03 per cent to reach ₹17,490 crore from ₹12,764 crore. The gross NPA stood at 2.64 per cent and net NPA at 1.19 per cent during the second quarter. Capital Adequacy Ratio (CRAR) stood at 20.57 per cent.

Uco Bank fiasco: Glitch first noticed in Jaipur, Jodhpur

Two Rajasthan cities — Jaipur and Jodhpur — are at the centre of a suspected technology glitch at UCO Bank that almost cost Rs 820 crore to the state-run lender.

Banks to provide more info on fraud accounts to NeSL

New Delhi: Banks will now provide additional data to information utility services on loan accounts designated as fraud.

BFSI industry faces a talent crunch in cybersecurity roles

Mumbai: Cybersecurity is among the top three important segments for companies in the Indian financial services industry but there is a gap in the industry needs and the availability of skills. Companies in general are looking for experienced professionals but this being a nascent segment, Indian universities have not been producing as many skilled professionals as the industry needs.

IDBI Bank ropes in EY to sell ₹4,000 cr distressed debt

IDBI Bank has hired EY India as the process adviser to find buyers for its ₹4,000 crore distressed debt portfolio that resides under the Stressed Assets Stabilisation Fund (SASF), said people with knowledge of the bank. The bank has mandated EY to complete the sale in six and a half months, the people said.

Home Loan Festive Offers: From SBI to HDFC, grab special offers on home loans by key banks
During festive seasons, lots of banks and housing finance companies come out with special offers to lure customers. This time also, many banks – including SBI, HDFC Bank and Axis Bank — have introduced festive offers on home loans which may be beneficial for those who intend to buy their dream home by taking a home loan.

NBFCs to face more heat than banks
The Reserve Bank of India’s (RBI) move on Thursday to increase risk weight on banks and non-banking finance companies’ (NBFCs) unsecured personal loan and credit card portfolio would likely hit the capital adequacy ratio (CRAR) of NBFCs more against that of banks, experts say.

Govt explores steps to boost affordable NBFC loans

New Delhi : The Centre is exploring options such as increasing the deposit acceptance limit for eligible non-banking finance companies (NBFCs), introducing deposit insurance and creating a specific liquidity window for NBFCs, according to two officials. The goal is to lower funding costs, enabling NBFCs to offer loans to crucial sectors such as agriculture and micro, small, and medium enterprises, at more affordable interest rates, they added.

Friday’s crash improved case for bargain buying in SBI Cards, Bajaj Finance: Anand James

As RBI tightened norms for consumer loans, shares of SBI Cards ended 5% lower while that of Bajaj Finance finished 2% weaker, Anand James, Chief Market Strategist at Geojit Financial Services, sees bargain buying opportunities.

SBI to hire fintechs & start-ups for digital solutions

The country's largest bank, the State Bank of India, will empanel start-ups and fintech companies for a host of services, including digital KYC, credit profiling, property, and car aggregation. The lender has come out with a tender inviting bidders for the development, customization, and integration of digital solutions.

Banks will migrate to new technology in the next three years: FSS chief
You’ve been in the payments business from long before it became a buzz word in the world of finance…

Fintech lenders may face heat after RBI tightens norms for unsecured lending
Fintech players could feel the heat after the Reserve Bank of India’s recent directive requiring lending institutions to increase their risk weightage or the amount of capital to be set aside against unsecured loans disbursed by them, according to several industry experts. The fintech platforms which generate leads and provide unsecured personal loans, consumer durable loans, credit cards and gold loans will be required to increase their risk weightages against such loans to 125 per cent from 100 per cent currently.

Fintechs may witness slowdown in loan disbursals
Fintechs may witness a slowdown in loan disbursals as the cost of customer acquisition will rise as a result of the recent Reserve Bank of India (RBI) norms on consumer loans and bank credit to non-bank lenders. This is because the requirement to maintain higher risk weights for certain loan segments will hamper the ability of their lending partners to provide capital at a low cost, say experts.

Looking ahead 2030 – How crypto will shape the future of finance
The year is 2030. The world has changed dramatically in the past decade, especially in the field of finance. Cryptocurrencies, once considered a niche and speculative asset class, have become mainstream and widely adopted by millions of people around the world. What are the factors that have contributed to this rapid growth and popularity of crypto? And what are the challenges and opportunities that lie ahead for the crypto industry and its users?

Mutual funds’ NFO collection surges 4 times to Rs 22,000 cr in September quarter
Mutual funds’ collection through new fund offerings (NFOs) surged nearly four times to Rs 22,000 crore in the July-September period this fiscal compared to the preceding quarter as 48 new schemes hit the market. Going forward, more NFOs can be expected in the coming quarters as several AMCs become operational and offer similar and differentiated products to the equity and debt investors, Gopal Kavalireddi, Vice President of Research at FYERS, said. “With investors firmly believing in the India growth story and the emergence of new segments in organised space, more and more companies are seeking funds through primary and secondary market offerings.

FPIs turn buyers; invest Rs 1,433 cr in equities in November so far
After sustained selling in the last two and a half months, FPIs bought Indian equities worth Rs 1,433 crore thus far in November, mainly due to the decline in US treasury bond yields and crude oil prices. Foreign Portfolios Investors (FPIs) were net sellers till November 15. However, they reversed the selling trend by infusing money during November 16-17, data with the depositories showed. “The ongoing festive season in India has been seen as a contributing factor to the renewed interest of FPIs in the Indian market. Alongside this, a decrease in US Treasury bond yields and a decline in crude oil prices alleviated some of the pressures that prompted the sell-off earlier,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Adviser India, said.

Bank of Baroda to raise up to ₹15,000 crore through infrastructure, tier-II debt bonds. Details here
Bank of Baroda on November 18 informed the stock exchanges that its capital raising committee has given the nod to raise up to ₹15,000 crore, comprising not more than ₹5,000 crore via the issuance of tier-II debt bonds and a maximum of ₹10,000 crore through infrastructure bonds.

GMR Airports plans Rs 1,950-cr debt raise at over 13% yield

Mumbai: GMR Airports Holdings is looking to raise ₹1,950 crore through a high-yield debt offering at a coupon rate of 13.275% with a tenor of three years.

Govt, regulators plan to revive AT1 bond market, re-examine rule for valuation

Mumbai: A concerted effort is on to revive the market for 'perpetual bonds' - complex securities that have sparked debates and court battles but without which many high-street banks would find it tough to raise capital in the coming years.