RBI issues revised norms for classification, valuation of investment by banks
The RBI on Tuesday issued revised norms for classification, valuation, and operation of investment portfolios of commercial banks, aligning them with global standards and best practices. The revised 'Reserve Bank of India (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) Directions, 2023' will be applicable from April 1, 2024, to all Commercial Banks excluding Regional Rural Banks.

RBI revises banks’ investment portfolio norms, effective from FY25
Mumbai: The RBI has issued revised guidelines for the classification, valuation, and operation of the investment portfolio of commercial banks based on feedback received on a discussion paper issued in January 2022. The revised directions, effective April 2024, include principle-based classification of investment portfolios, tightening of regulations around transfers to/from the held-to-maturity (HTM) category and sales out of HTM, inclusion of non-SLR securities in HTM subject to certain conditions, and symmetric recognition of gains and losses.

IOB embraces digital medium to offer online allotment of locker facility
Public sector Indian Overseas Bank has introduced online allotment of safe deposit locker facility to serve its customers, the lender said on Tuesday.

Yes Bank partners Juspay to offer merchant in-app UPI payments
Mumbai: Yes Bank today has partnered with Juspay to launch HyperUPI - NPCI’s plug-in service - that allows merchant apps to build in-app UPI payments. Merchants onboarded by Yes Bank can now offer their customers a one-click UPI experience without opening their UPI app.
 

SME financing evolving along the lines of retail financing: SBI Chief
Mumbai: SME (small and medium enterprise) financing is evolving along the lines of retail financing, according to State Bank of India Chairman Dinesh Kumar Khara. SME financing is charting the path of retail financing, with most of the credible information sources being available through digital mode, he said at the Global SME Finance Forum.

Banks seek contract CXOs to slash costs
Mumbai: Leading Indian banks are increasingly hiring contract staff, including C-suite executives and have reached out to headhunting firms in their efforts to lower employee cost, said three people in the know.

Bank of Baroda announces festival campaign: Cuts home and car loan rates, offers special discounts
Mumbai: Bank of Baroda (BoB) has launched a festival campaign, whereby it has cut home and car loan interest rates by 20 basis points (bps) and up to 10 bps, respectively. Under the campaign, which will run up to 31st December, 2023, the public sector bank has also cut education and personal loan interest rates by 60 bps and 80 bps, respectively.

Kotak Mahindra Bank's digital platform 'Kotak fyn' drives 68% of corporate banking transactions
Kolkata: An overwhelming 68% of Kotak Mahindra Bank's corporate banking transactions are happening digitally, thanks to the bank's new digital platform for corporate clients, a senior bank executive said.

Regulators can establish clear, adaptable regulatory framework for fintechs: Khara
Indian regulators can perhaps establish “clear and adaptable” regulatory framework for fintechs which will accommodate evolving digital technologies and encourage innovation at the same time, State Bank of India (SBI) chairman Dinesh Khara said at a fireside conversation at the SME Finance Forum event here today.

Federal Bank to open 100 branches in FY23
Federal Bank, the largest private sector lender in Kerala, on Tuesday said it will open 100 more branches this fiscal as part of its increasing focus on lending to small businesses.

Banks-Fintech relationship: From competition to collaboration
‘Evolve your technological capabilities or perish’. This was the crux of banking veteran KV Kamath’s speech at the Global Fintech Festival last week for lenders who did not update their technological prowess and subsequently risked losing market share to agile fintechs.

AU Small Finance eyes Fincare SFB for acquisition
AU Small Finance Bank is said to be in preliminary talks to acquire the business of Fincare Small Finance Bank. According to highly placed sources, the development is quite recent, and discussions are at nascent stages. If talks fructify, it would be the first deal in the small finance bank space symbolising consolidation in the industry.

Citibank India FY23 net profit grows 26%
Mumbai: Citibank India on Tuesday reported a 26% year-on-year net profit in the previous financial year, excluding the one-time gain arising from the sale of its consumer business to Axis Bank.

SEBI penalises Reliance Home Finance for violating LODR regulations and concealing forensic report findings
Mumbai: The Securities and Exchange Board of India has slapped a penalty of ₹15 lakh on Reliance Home Finance for violation of LODR regulations and failure to disclose the adverse findings of a forensic report.

Top banks’ home loan processing fees: Check which bank is charging lowest fee

For a home loan, there are various fees that apply to the loan. These fees differ between lenders such as banks, housing finance firms, and non-banking financing companies, with some levying fees separately and others that club fees. While some fees are tied as a fixed percentage of the house loan balance, others are not. Remember that not every borrower has to pay the same processing fee when availing a home loan.

Nabard signs MoU with UNDP to co-create data-driven innovations
The United Nations Development Programme (UNDP) and the National Bank for Agriculture and Rural Development (Nabard) have signed a Memorandum of Understanding (MoU) to co-create data-driven innovations in agriculture and food systems to support smallholder farmers. Under this MoU, both organisations will work to improve the lives and livelihoods of smallholder farmers by sharing open-source data for product development, transfer of technology and supporting the framing of agrarian policies.   Sanjeev Rohilla, Chief General Manager of Nabard, and UNDP Deputy Resident Representative, Isabelle Tschan, signed the agreement on Tuesday. Speaking to businessline after signing the agreement, Rohilla said Nabard is building a data warehouse for the country.

Sidbi expects its loan book to hit Rs 5 lakh crore this fiscal
State-owned Small Industries Development Bank of India (Sidbi) expects its loan book to reach Rs 5 lakh crore this fiscal and direct funding to touch 25 per cent of its total book over the next three years. The SME loan book (of commercial banks) as of March 2023 was Rs 25 lakh crore, while the total credit market stood at a little over Rs 148 lakh crore, according to the RBI data.

SIDBI eyes 25% share in total MSME lending
Mumbai: The Small Industries Development Bank of India (SIDBI) is eyeing a 25 per cent share in the Banking system’s total lending to micro, small, and medium enterprises (MSMEs) in three years. Currently, its share is 14 per cent. To support this, it expects to raise equity capital, including ₹5,000 crore in two tranches, said S Ramann, Chairman and Managing Director, SIDBI. This capital-raising programme will include a rights issue next year.

SIDBI plans to float a rights issue in FY25 to expand its equity capital
Mumbai: Small Industries Development Bank of India (SIDBI), a refinancing entity for SME finance, will float a rights issue of equity shares in the next financial year to expand its capital base by Rs 10,000 crore and support a growing balance sheet.

23% shoppers expected to shop more during festive period vs last year, says Axis My India CSI survey
The upcoming festive season this year is expected to post a growth in people spending as compared to the previous year. According to the latest insights from the India Consumer Sentiment Index (CSI) by Axis My India, 23 per cent of respondents are anticipating increased shopping activities during the upcoming festive season, reflecting a positive sentiment towards holiday spending. Additionally, it said that 44 per cent of those intending to maintain their pattern of participation in e-commerce festive sales this year plan to spend more than last year. However, it maintained that the overall household spending increased for 55 per cent, which showcased a 3 per cent decrease from last month. 

Expect double-digit growth for next 3 years in largecap private sector banks: Viral Berawala
Viral Berawala, Director, Buoyant Capital, says “three broad parts among largecaps look attractive.. One is banks, second is insurance, and third is staples. Among banks, leading private sector banks have underperformed hugely. And we think at some point of time, there will be some sort of valuation catch-up. Maybe that is the only part of the market which is trading at its average valuation. And we will still see double-digit growth at least for the next three years in almost the entire leading private sector bank market. ”

Microfinance institutions in Karnataka show 10% portfolio growth
Microfinance Institutions (MFI) in Karnataka have a loan portfolio of Rs 46,000 crore as on March 2023, showing more than 10% in year-on-year growth, according to an impact report by the Association of Karnataka Microfinance Institutions (AKMi). The association released a sector report for fiscal year 2022-23 in the Microfinance Karnataka Summit – 2023 on Tuesday.

IL&FS to sell custody & depository unit

The IL&FS board has put the group's custody and depository business, IL&FS Securities Services (ISSL), on the block almost five years after IndusInd Bank pulled out of a deal to acquire the entity following the collapse of the infrastructure financier in September 2018.

No immediate plans to shift domicile to India, says Razorpay CBO
Razorpay has no immediate plans to shift the domicile of its parent entity to India from US, says Chief Business Officer Rahul Kothari.

Razorpay acquires digital invoicing and customer engagement start-up BillMe
Fintech unicorn Razorpay has acquired digital invoicing and customer engagement start-up BillMe. The Mumbai-based start-up aims to eliminate paper bills and substantially increase value-add for merchants with digital invoicing. This is the eighth acquisition by the fintech major, after it acquired Ezetap in August 2022. With this acquisition, Razorpay aims to empower businesses with a hybrid model, to engage better with end-customers. Due to higher smartphone penetration and a consumer base of over 1 billion smartphone users, end-customers have been giving preference to contactless and frictionless modes of engaging with businesses.

Building AGI stack to shield against potential frauds, says Paytm CEO
Source Credit: Ajinkya Kawale, Business Standard

Mumbai: Paytm is building an Artificial General Intelligence (AGI) software stack that can potentially shield the company from possible risks and frauds, lower costs, and also serve India’s financial ecosystem in the future.

UPI Now, Pay Later: Not enough money in bank account? You can still do UPI transactions and pay later

Do you know that even if you don't have enough money in your bank account, you can still pay through your Unified Payments Interface (UPI) application? The Reserve Bank of India (RBI) has now allowed banks to offer a credit line facility to UPI users. You can spend from a pre-sanctioned credit line and repay the bank later. How does it work? Read on to find out.

Cashfree Payments partners with NPCI to launch customer onboarding feature

Cashfree Payments’ AutoPay on QR would enable subscription-based businesses to enhance customer acquisition, support retention, and facilitate rapid growth, said the company statement.

Paytm’s founder, Vijay Shekhar Sharma sets sight on positive cash flow
One97 Communications, which owns the Paytm brand, is aiming to achieve free cash flow positive status even as it continues to invest in innovative products and expand its distribution, it’s Founder and CEO Vijay Shekhar Sharma said on Tuesday.

UST, mistEO to develop climate risk management models for US insurance, banking clients
Digital transformation solutions company UST and climate fintech company mistEO have announced a partnership with a view to addressing pressing need for accurate, localised weather and climate risk data in insurance and banking sectors. With climate-related risks on the rise, insurers and banks face escalating costs due to the absence of reliable, hyper-localised projections. 

Angel One announces business restructuring, appoints Nishant Jain as chief business officer for assisted channels
Angel One Ltd (formerly Angel Broking Ltd) on Tuesday announced that it has undertaken a business restructuring initiative. As part of this reorganization, the company’s business from the assisted channel will be consolidated under Angel Securities Limited, while that from the direct channel will be housed under Angel Crest Limited. Angel One has also onboarded Nishant Jain as the Chief Business Officer overseeing the assisted channels.

Banking and Financial Services players likely vanguards of next surge

Mumbai: In the event of substantial selling pressure, especially in midcap and smallcap stocks, one can contemplate buying large-cap banking or finance stocks, which could minimize downside risks, according to analysts. Both the Nifty Bank and Nifty Financial Services indices have underperformed the broader Nifty index in six months. Stocks such as HDFC Bank, Kotak Bank, SBI, and SBI Cards have also yielded lower returns than the benchmark index.

Bitcoin slips below $25,800; XRP, Solana fall up to 2.24%

Major cryptocurrencies witnessed a fall on Tuesday amid gains in the greenback. Bitcoin (BTC) was trading at $25,729, down 0.53% while Ethereum (ETH), Tether USDt, BNB, USD Coin, XRP Dogecoin, Cardano and Solana fell up to 2%.

Next three-four quarters favourable for gold, says Nippon India Mutual Fund
The macro view developing for the coming three-four quarters could be favorable for gold, says a report from Nippon India Mutual Fund.

August MF SIP inflows at record 15,800 crore with 36 Lakh new accounts
Mumbai: Monthly inflows into mutual fund schemes through the systematic investment plan (SIP) route scaled a new all-time high mark at just over Rs 15,800-crore in August as nearly 36 lakh new SIP accounts were opened during the month, also a new peak.
 

26 aggressive hybrid schemes offer over 15% in three year horizon
Around 26 aggressive hybrid schemes have offered more than 15% in a three-year horizon, data crunching by ETMutualFunds showed. ETMutualFunds looked at the trailing return of 29 aggressive hybrid schemes that have completed three years in the market.

ABSL Mutual Fund changes fundamental attribute of Aditya Birla Sun Life Focused Equity Fund.

Aditya Birla Sun Life Mutual Fund has changed the fundamental attribute of Aditya Birla Sun Life Focused Equity Fund. The scheme will now be called Aditya Birla Sun Life Focused Fund. The investment universe of the scheme will be changed from large cap to large cap, mid cap and small cap stocks.

MF SIPs hit a record high of Rs 15,814 crore in August
 

RBI rule change leaves many AIFs in the lurch
Mumbai/New Delhi: Following a recent change in the Reserve Bank of India (RBI)’s regulations, venture capital and private equity funds have halted new and follow-up investments, resulting in a backlog of deals, said fund managers and founders. The industry has approached the banking regulator, seeking clarification, they added.

FII offload ₹1,047 crore in Indian equities after markets decline over profit booking; DIIs invest ₹259 crore
Foreign institutional investors (FIIs) continued selling on Tuesday, September 12, after domestic benchmark indices Sensex and Nifty snapped its seven-day winning streak weighed by profit booking. The domestic institutional investors (DIIs) were net buyers again and invest ₹259 crore in stocks today.

Actis plans roads InvIT, could raise up to ₹2,000 crore

UK-based global private equity firm Actis is looking to monetise a portfolio of operating road assets that it owns in India through an infrastructure investment trust (InvIT), potentially raising as much as ₹1,500-₹2,000 crore, said two sources aware of the development. Last year, Actis acquired a portfolio of six roads - five hybrid annuity model (HAM) properties and one build operate and transfer (BOT) road - from Welspun Enterprises for an enterprise value of ₹6,000 crore ($775 million).

Mid-market PE fund Xponentia raises Rs 1000-crore for its second fund

Mumbai: Xponentia Capital Partners, the mid-market focused private equity fund, has raised about Rs1000 crore for its second fund - Xponentia Opportunities Fund - II. The homegrown fund, which counts Barbeque Nation and Altigreen among its portfolios, launched the fund in early 2022.

India bond yields seen steady, Aug CPI data eyed
Indian government bond yields are likely to trade largely unchanged in early session on Tuesday before an auction of state debt and release of retail inflation data later in the day.

Barclays bank to lay off over 450 employees in UK
In a bid to increase efficiency, Barclays Bank is planning to lay off over 450 employees working in its UK consumer facing unit, reported Bloomberg referring to trade union Unite. 

Crypto derivatives volumes surge to $3.12 trillion in July - CryptoCompare
Cryptocurrency derivatives trading on centralised exchanges rose to $3.12 trillion in July, a 13% monthly increase, researcher CryptoCompare said on Thursday, as crypto prices show signs of recovery from the recent market crash.