Nirmala Sitharaman commends 'PM Vishwakarma' scheme, celebrates artisans' contribution to India's economy
New Delhi: The launch of the 'PM Vishwakarma' Scheme was met with admiration and respect from Union Finance Minister Nirmala Sitharaman, who paid tribute to the revered artisans of India while highlighting their profound impact on the nation's history and economy.
 

Corporate banking profitability at an all-time low
Mumbai: The heightened pricing war in the corporate or wholesale lending market is beginning to pinch banks more than what was anticipated. According to senior executives in the industry, NIM or net interest margin, which is the measure of profitability, is at a all-time low of 1.5-1.75 per cent for the wholesale banking business. This converts to a profitability erosion of over 100-120 basis points over the last five years. 

RBI report. Bank credit growth drives robust resource flow to India’s commercial sector
The total flow of resources to the commercial sector in India rose 31 per cent year-on-year (yoy) in FY23, with banks share increasing to 59 per cent of the total (from 46 per cent in FY22) and non-banks share declining to 41 per cent (from 54 per cent), per the Reserve Bank of India’s Handbook of Statistics on the Indian Economy 2022-23.

Likely to miss monthly repayment? Don't worry, SBI will send you a chocolate
The nation's largest lender State Bank of India is adopting a novel way to ensure timely repayments, especially by its retail borrowers, by greeting those likely to default on monthly installments with a pack of chocolates. According to the bank, it has been found that a borrower who is planning to default will not answer a reminder call from the bank. So the best way is to meet them at their homes unannounced.

Indian Bank unveils 'IB SAATHI' to enhance banking services
Public sector Indian Bank on Saturday announced roll out of 'IB SAATHI' initiative aimed at providing an integrated ecosystem for all stakeholders in the financial sector through the business correspondent route.

Time matters. SBI MD Tewari recommends measuring time for each IBC process bucket
New Delhi: State Bank of India (SBI) has proposed measuring the timelines of various segments within the Insolvency and Bankruptcy Code (IBC) process to pinpoint and address significant delays. 

SBI to send chocolates to borrowers who are likely to default on monthly repayments
Mumbai: The nation's largest lender State Bank of India is adopting a novel way to ensure timely repayments, especially by its retail borrowers, by greeting those likely to default on monthly installments with a pack of chocolates. The move, aimed at ensuring better collections, comes amidst rising level of retail lending in the system coupled with increasing delinquency levels on the back of the upward movement in the interest rates.

PSBs bullish on MSME segment loan growth
Large public sector financial institutions are fast tracking their exposure to the micro, small and medium enterprises (MSME) sector, senior bankers told FE. For example, SIDBI and SBI alone are likely to extend nearly Rs 1 trillion of MSME loans each, while others like Bank of Baroda and Union Bank of India are looking at growing their book by 10%-14%, respectively.

Best Fixed Deposit Interest Rate in September: Lowest to Highest FD Interest of 30 Banks Compared
Fixed Deposit Interest Rates September 2023: Fixed Deposit schemes have become attractive in 2023 as several banks are now offering over 8% interest to general as well as senior citizens. Here’s a look at the Fixed Deposit interest range offered by 30 banks, including small finance banks, in September, according to Bankbazaar data.

‘The formal economy is getting more digital and more transparent for lenders… there’s clarity in credit book: Federal Bank MD
Source Credit: Hitesh Vyas & George Mathew, The Indian Express

Dhanlaxmi Bank independent director resigns citing differences from other board members

Kolkata: An independent director of private sector Dhanlaxmi Bank has resigned from the bank's board citing factionaism on the board as well as unethical conduct of the bank's businesses which includes misusing the one-time settlement mechanism for bad loan resolution.

Standard Chartered Bank sets up private banking centre in Chennai; to serve ultra-high-net-worth clients
Private sector Standard Chartered Bank has inaugurated its private banking centre in the city, the over-century-old bank said on Saturday. This Private Banking Centre is the fifth after Bengaluru, New Delhi, Kolkata, and Mumbai.

India's rating should reflect its potential: Kaushik Shaparia, CEO of Deutsche Bank Group, India
Given strong economic fundamentals, India's sovereign rating should be much higher than what it is, although more needs to be done to convert the burgeoning global interest in the country into actual investment, Kaushik Shaparia, CEO of Deutsche Bank Group, India, told Bhaskar Dutta and MC Govardhana Rangan in an interview.

Edited excerpts:

US International Development Finance Corporation sanctions $20 million loan for Ummeed Housing Finance

The US International Development Finance Corporation (DFC) has sanctioned a $20 million long term loan for Gurgaon-based Ummeed Housing Finance to fund housing needs of the economically weaker and middle-income groups.

Sidbi to raise Rs 10,000 crore from rights issue next fiscal
Small Industries Development Bank of India (Sidbi), which refinances SME loans, plans to float a Rs 10,000-crore rights issue next fiscal to expand its equity capital as it expects to grow assets to Rs 5 lakh crore by March 2024 from about Rs 4 lakh crore in March 2023, a top official has said.

Nabard to list Social Bonds on Sept. 29; kicking off bonds under sustainability bond framework
Hyderabad: In a first-of-its-kind borrowing instrument, the National Bank for Agriculture and Rural Development (Nabard) has said it will be listing the first of its social bonds on September 29 with a size of Rs 3,000 crore.  “This is the first by an AAA-rated entity. It will be followed by sustainability and green bonds. Climate and sustainability are very important. We have recently set up an exclusive vertical to take care of the needs of these sectors,” Nabard Chairman Shaji KV has said.

These NBFCs to face tougher regulations of RBI. Check here if you have an account in them
The Reserve Bank of India (RBI) has released the list of 15 entities that will comprise the ‘NBFCs in the upper layer for 2023-24’ under the scale-based regulations for non-banking financial companies.

Amid calls for more licences, deposit-taking NBFCs at record low of 34 in FY23
Mumbai: The number of deposit-taking NBFCs has fallen to a record low of 34 in FY23, from 69 in pre-pandemic FY20, and 254 a decade ago, as per data from RBI’s Handbook of Statistics on the Indian Economy for FY23. “Number of NBFCs collecting deposits decreased consistently due to the changed norm of acceptance of deposits,” the central bank said in the notes. The sharpest fall was in FY19, when the number of deposit-taking NBFCs more than halved to 81 from 168 in the previous year.

Nod for Zee-Sony deal violates Sebi order, Axis tells NCLAT
Axis Finance Ltd has told an appeals court that the National Company Law Tribunal (NCLT) approved the Zee-Sony merger in “contravention" of a regulatory order against Punit Goenka, former managing director and chief executive officer of Zee Entertainment Enterprises Ltd.

NCLAT stays bankruptcy proceedings against Ind - Swift

Mumbai: The National Company Law Appellate Tribunal (NCLAT) granted a stay on initiating bankruptcy proceedings against Ind-Swift Ltd, an affiliate company of Ind-Swift Laboratories, which is selling a part of its pharma business to the Piramal-Bain-backed India Resurgent Fund for ₹1,650 crore, shows a court document.

Asset reconstruction cos urge RBI to let rich individual investors bet on security receipts of stressed assets

Mumbai: India's stressed asset players are lobbying for opening the market to rich individual investors.

Strong business momentum may continue in MFIs
 

‘We want to partner banks to gain foothold in home loans’
 

“Will set up committee to review compliance lapses”: FACE CEO
Fintech Association for Consumer Empowerment (FACE) is planning to set up a three-member enforcement committee to look into compliance lapses by financial technology companies by end of FY23, said Chief Executive Officer Sugandh Saxena.

NSE to introduce IRRA platform to address technical glitches, outages for trading members
New Delhi: To address technical glitches or outages, the National Stock Exchange will introduce an Investor Risk Reduction Access (IRRA) platform for trading members.
 

‘Bear market in crypto, TDS deal double blow for sector’
 

We are trimming down cyclical names, adding consumer and utility names: Ashutosh Bhargava, Nippon India Mutual Fund
Ashutosh Bhargava, Fund Manager and Head of Research, Nippon India Mutual Fund, says, “the medium-term outlook is incrementally becoming better across equipment providers and even some of the infrastructure names. So, on a relative sense, despite the run-up we prefer to look at some of these capital goods stock where medium- to long-term prospects remain healthy still although some of the attractiveness are already priced in terms of higher valuations.”

Mutual Funds: Hedge rate risks with floater funds
As floater funds mitigate interest rate risks and adjust the duration based on prevailing interest rates, investors are finding them attractive. In August, when most debt-oriented schemes saw net outflows, floater funds attracted net inflows of `2,325 crore, data from Association of Mutual Funds in India show.

FPIs offload ₹4,800 crore from equities in first fortnight of September
New Delhi: Foreign portfolio investors (FPIs) have pulled out close to ₹4,800 crore from equities in the first fortnight of September on rising US bond yields, a stronger dollar, and concerns over global economic growth. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in ₹1.74 lakh crore during the period.

Big PE deals prop up last week’s investment value
 

ECB hikes, cuts growth outlook; US core inflation remains bit firmer
The European Central Bank raised interest rates this week and trimmed growth estimates as President Christine Lagarde signaled a shift that could mean borrowing costs have peaked.