Surplus liquidity normalisation, robust credit growth bolstered monetary policy transmission: RBI article
Mumbai: The external benchmark-based lending rate (EBLR) system of loan pricing, calibrated normalisation of surplus liquidity and robust credit growth strengthened the monetary policy transmission during the current rate tightening cycle, according to an article in the Reserve Bank of India’s (RBI’s) monthly bulletin.

Penalties rise as RBI turns up scrutiny of banks, NBFCs
Mumbai : The Reserve Bank of India (RBI) slapped penalties totalling ₹71.4 crore in 56 cases in the year so far as it enhanced scrutiny of banks, non-banks and other regulated entities, data compiled by Mint showed. In comparison, the banking regulator levied fines of ₹26 crore across 34 cases in all of last year.

RBI in CBDC talks with US & Hong Kong, Swift

India's banking regulator is in discussions with its counterparts in the US and Hong Kong, and the Society for Worldwide Interbank Financial Telecommunications (Swift), to assess the feasibility of quick and inexpensive digital cross-border settlements that will likely involve transacting through central bank digital currencies (CBDC), sources close to the development told ET.

Co-lending deals between NBFCs, banks set to rise after RBI nudge
 

SBI chairman Dinesh Khara on the 4 ‘I’s that matter & on reaping the fruits of digital depth
The calmness of the financial market off late when markets in developed economies were in a tailspin has shown the maturity and depth embraced domestically and this to Dinesh Kumar Khara, “is a harbinger of better times to come.” This was one among the several comforting thoughts and insightful observations shared by the ever articulate and affable chairman of India’s banking behemoth – the State Bank of India. 

LIC keen to keep part of its stake in IDBI Bank to reap benefit of bancassurance
State-owned LIC, promoter of IDBI Bank, has said it plans to retain a part of its stake in the lender to harness the benefits of the bancassurance. Along with the government, Life Insurance Corporation (LIC) will also divest its stake in IDBI Bank but may not exit completely, LIC Chairman Siddhartha Mohanty told PTI in an interview.

HDFC Bank appoints former NABARD chairman Bhanwala as director
HDFC Bank on Monday said the board of the bank has approved the appointment of former NABARD chairman Harsh Kumar Bhanwala as an additional independent director. The board in its meeting on Monday also approved the appointment of V Srinivasa Rangan, chief financial officer of erstwhile Housing Development Finance Corporation Ltd, as executive director for three years with effect from November 23, 2023, HDFC Bank said in a regulatory filing.

HDFC Bank revises rates on these fixed deposits. Check latest FD rates here
HDFC Bank has revised its interest rates on non-withdrawable fixed deposits (FDs). As per the official website of HDFC Bank, interest rates on these deposits are effective from today 27th November 2023.

Wage hike decision for PSB staff likely by mid-December
Employees at public sector banks (PSBs) may see a 15%-20% hike in salaries and implementation of a five-day work week by the middle of December as the 12th bipartite settlement talks between bank unions and associations and the Indian Banks’ Association (IBA) have entered the final stage, four people aware of the development told FE.

Indian Bank reduces exposure to infra sector to cut down concentration risk
Chennai: Chennai-based Indian Bank has been reducing its exposure to the infrastructure sector to cut down concentration risk. 

Biz trajectory remains intact, committed to achieving targets: RBL Bank CEO
The Reserve Bank of India’s recent decision to increase risk weights on unsecured loans does not necessitate any capital raise by RBL Bank, MD & CEO R Subramaniakumar tells Manojit Saha in a video interview.

Edited excerpts

Indel Money's net profit rises 127% in Q2FY24, revenue up 61%

Gold loan non-banking finance company Indel Money has witnessed a rise of 127.21% in its net profit in the second quarter of FY24 to 18.91 crore from Rs 8.32 crore in the corresponding period of FY23. The revenue for the quarter rose by 61.09% to Rs. 77.03 crore as compared to the same period in the previous year.

Get rewarded for UPI payments with virtual Rupay credit cards
New Delhi: UPI, or Unified Payments Interface, is increasingly becoming the preferred method of payment for all types of transactions. Last year, the Reserve Bank of India (RBI) permitted the linking of Rupay credit cards to UPI accounts, thereby allowing the plastic to be used for smaller transactions as well. Most major banks now offer Rupay credit cards that can be linked to your UPI account, irrespective of the category of the card. But, will existing credit card holders have to get a separate Rupay card just to avail the UPI payment option? No, one can get a virtual Rupay credit card in just a matter of a few hours.

Fintech startup GrowXCD Finance raises Rs 50 crore in funding from Lok Capital
GrowXCD Finance has raised Rs 50 crore in a series A funding round from Lok Capital, of which the first tranche of Rs 30 crore has been closed.

Jefferies begins coverage of BSE, sees an upside of 24% in next 12 months
After a massive surge of 290% this year, the BSE stock has now garnered coverage from Jefferies, anticipating a 24% rally in the coming year. Jefferies, a foreign brokerage firm, predicts a substantial 150% increase in earnings for the stock in the fiscal year 2024, with a doubling effect expected by fiscal year 2026.

With Changpeng Zhao’s Binance exit, does it bring the spotlight on the urgency for cryptocurrency regulations
It seems that the misery continues to add for the cryptocurrency industry. In the latest turn of events, Changpeng Zhao (CZ), co-founder, Binance, a global cryptocurrency exchange, resigned from his position as the exchange’s CEO after confessing to money laundering charges over infringement of the Bank Secrecy Act. From what it’s understood, CZ and Binance were subjected to years-long scrutiny by the United States Department of Justice (DOJ). “I believe Zhao’s departure marks a turning point for the global crypto landscape, signalling a shift towards transparency and regulatory compliance. As the largest offshore digital assets exchange, Binance has been at the centre of regulatory scrutiny in the US and other jurisdictions. This move seems to be a development for the industry, as it demonstrates that even influential players are not above the law,” Manhar Garegrat, country head – India and global partnerships, Liminal, a wallet infrastructure and custody solutions platform, told FE TransformX.

Bitcoin falls below $37,400; Solana, Polygon shed up to 3%

The major crypto tokens were trading in the red on Monday, dragged by the losses in Bitcoin and Ethereum. Meanwhile, the global cryptocurrency market cap declined 1.26% to around $1.42 trillion in the last 24 hours.

Bajaj Finserv Balanced Advantage NFO: Is this hybrid fund different?
Mutual fund investors are preferring hybrid funds amidst volatility in equity markets. One of the key categories in hybrid fund arena is the balanced advantage/dynamic asset allocation space, and this club has a new entrant: Bajaj Finserv Balanced Advantage Fund (BAF). Bajaj Finserv Asset Management has launched a new open-ended dynamic asset allocation fund for investors seeking hybrid portfolios i.e. equity and equity related instruments, including derivatives, and fixed income instruments.

Insider trading norms for MFs hang fire a year after notification
Mumbai: A year after market regulator brought mutual funds under the ambit of insider trading regulations, the norms are yet to get enforced. There are operational hurdles in setting up common industry standards, even as the Association of Mutual Funds in India has held several talks with SEBI on the matter, said two people in the know. There could be issues at the exchange’s end as well.

India learns about financial savings while funds are hoping for mutual benefits

Mutual funds are conducting investor awareness programmes (IAP) across the country as they seek to encourage more savers to put money into financial assets. Data from industry body, the Association of Mutual Funds in India (AMFI), showed that last financial year, 34 asset management companies (AMCs) have conducted 10,364 programmes covering more than half a million participants.

Invesco under Sebi lens for alleged violation of rules

Mumbai: The Securities and Exchange Board of India (Sebi) has issued a show-cause notice to the local unit of Invesco, a US-based asset manager, for possible violations of mutual fund rules that potentially risked investor money, people familiar with the development told ET. Invesco is reportedly found to have shuffled securities between schemes in alleged violation of rules.

Long-term funds 'stick' to D-St's hot equity show

Long-term sticky funds, which include the corpus owned by sovereigns, pension managers, global central banks, and majority state-owned foreign entities, continue to put money into Indian equities despite the circumspect approach toward local risk assets by a section of investors based at global financial hubs.

Private equity company True North enters the private credit segment
The company said it recognised the need to expand its product offering beyond private equity (PE) to leverage its capabilities and fully deliver value to all stakeholders. The private credit sector in India is fast evolving into a robust segment, driven by the favourable risk-reward equation and the presence of a good regulatory framework. Hence, True North has decided to foray into private credit (PC) to offer agile capital solutions to well-governed and profitable enterprises and deliver superior, risk-adjusted returns to its investors, the statement said.

PE firm True North forays into private credit, raises ₹1,000-crore fund
Mumbai: Homegrown private equity fund True North has announced a foray into private credit, joining a slew of other entities which have started dabbling in this space. The firm said it had set up a fund in 2022 and has already raised over ₹1,000 crore. It intends to close the fund by the end of the year, as per a statement. The business christened "True North Private Credit" will build on the capabilities of the firm over the last two decades. “A favourable risk-reward equation and a good regulatory framework make private credit a robust business,” the statement said. The business will offer agile capital solutions to well-governed and profitable enterprises and deliver risk-adjusted returns to its investors.

Bank, NBFC bond issues to remain elevated due to higher risk weights
The spike in bond issues by banks and NBFCs in the first half of FY24 is likely to continue in the second half as lenders shore up resources following the recent hike in risk weights on consumer credit, and on expectations that the central bank will keep liquidity tight to reign in inflationary pressures. Total funds mobilised via the NCD (non-convertible debenture)/bond (sub-debt) route by NBFCs and banks during H1 FY24 soared to about ₹3.08 lakh crore from ₹1.92 lakh crore in the year-ago period, per industry estimates. Participants expect December to be a “bumper month” for bond issues, pegging total FY24 bond issues at 10 per cent higher than FY23.

PE firm True North forays into Pvt credit, raises Rs 1,000-cr fund
Homegrown private equity fund True North on Monday announced a foray into private credit, joining a slew of other entities which have started dabbling in this space. The firm said it had set up a fund in 2022, and has already raised over Rs 1,000 crore. It intends to close the fund by the end of the year, as per a statement.

Five Reasons to Choose Bajaj Finance Fixed Deposits
Bajaj Finance Fixed Deposits are compelling choice, offering a unique set of advantages that cater to the diverse needs of investors.

RBI, BoE closer to settling CCIL issue in boost for Bond Street

Mumbai: The Reserve Bank of India and regulators in the UK have made significant headway in crafting a new agreement to govern the treatment of the Clearing Corporation of India (CCIL), with both sides moving closer to swiftly removing a hurdle that had threatened to stall British banks' activity in Indian government bonds and derivatives.

Eight years later, SGB-I returns glitter

Mumbai: Investors in the first tranche of sovereign gold bonds (SGB), launched in November 2015, have made an annualised return of 10.87%. The Reserve Bank of India (RBI) announced a final redemption price of ₹6,132 per gram of gold when these bonds mature on November 30.

IIFL Samasta aims to raise Rs 1,000 crore in public bonds

Kolkata: IIFL Finance's microfinance subsidiary IIFL Samasta Finance is all set to hit the market with to raise Rs 1000 crore in its maiden public bond issue at 9.6-10.5% interest rate.

Rise in bond issuances: NBFCs and banks brace for continued surge in H2 FY24
The spike in bond issuances by non-banking finance companies (NBFCs) and Banks in the first half of FY24 is likely to continue in the second half as well as they move in to shore up resources in the wake of the recent hike in risk weights on their exposure to consumer credit and credit card receivables and expectation that the central bank will keep liquidity tight to bring retail inflation down to 4 per cent.