RBI asks CICs to prepare data quality index for commercial, microfinance segments
The Reserve Bank of India on Wednesday asked Credit Information Companies (CICs) to prepare data quality index for commercial and microfinance segments. In June 2014, the RBI had issued directions for setting out a common Data Quality Index (DQI) for assessing the quality of data submissions by Credit Institutions (CIs) to CICs, and improving them over a period of time.

HDFC Bank shares slip 4% on negative guidance for merged entity
Mumbai: Shares of HDFC Bank fell 4 per cent lower today after the bank’s management provided negative guidance on RoA, net worth and asset quality due to accounting changes from IND-AS to IGAAP, credit policy harmonization, and DTL (demand and time liabilities) reserve, among other factors.

India’s banking system liquidity deficit jumps to over 4-year high
India’s banking system liquidity deficit is at its widest in over four years ago, amid tax outflows and the lack of any major inflows, traders said on Wednesday.

India already benefitting from China Plus One; just look at smartphone exports: Neelkanth Mishra, Axis Bank
In an interview to ET Now, Neelkanth Mishra, Chief Economist, Axis Bank and Head of Global Research, Axis Capital, shares his opinion on Indian and global economies and financial markets.

Edited excerpts:

These 4 banks have revised FD interest rates in September 2023

Many large banks, including SBI, HDFC Bank, and ICICI Bank, have not revised their fixed deposit interest rates in recent months. The Reserve Bank of India’s(RBI) Monetary Policy Committee (MPC) meeting on October 4-6, 2023, will be watched closely to see how the FD rate situation develops. This is because the RBI has maintained status quo on key rates for the last three times.

DBS Bank’s Shoma Narayanan on the bank’s evolving marketing strategy and the growing role of technology in BFSI industry
 

Would like to see 10-12% of funding met by public deposits: CEO, LIC HF
Tribhuwan Adhikari, managing director and chief executive officer of LIC Housing Finance, an upper-layer, deposit-taking non-banking financial company (NBFC), discussed strategies to reduce non-performing assets (NPAs) in a conversation with Manojit Saha.

Edited excerpts

Delhi HC upholds SBI’s eligibility criteria for ATM caretaker services

Upholding the SBI’s eligibility criteria for selecting caretaker agencies for its automated teller machines (ATM) in Delhi, the Delhi High Court on Wednesday said the PSU bank was best equipped to gauge the practicalities involved .

ATM manufacturers seek higher interchange rates

ATM operators have made a representation to the Reserve Bank and the other authorities to hike the current interchange rate on transactions to make them financially viable, suggesting they be linked benchmarks like wholesale price index, the way toll rates are linked.

NBFCs anticipate 40-50% jump in MSME loan sanctions for festival season
Mumbai: NBFCs are anticipating 40-50 per cent jump in MSME loan sanctions and disbursements ahead of the festival season on the back of an over 50 per cent expected rise in sales volumes.

‘Growing urbanisation will make new verticals profitable’
Gold loan major Manappuram Finance made impressive gains in both profitability and AUM in first quarter of FY24 while making steady progress in the non-gold businesses, especially microfinance, helping the company to become a well-diversified NBFC entity. The Kerala-based company has ventured into more non-gold verticals and it believes that growing urbanisation and increasing incomes will help it become profitable in the new verticals. VP Nandakumar, MD & CEO, Manappuram Finance, tells Sajan C Kumar that it will not, however, scale down its gold loan book and expects a 10-% y-o-y growth in gold loan AUM in FY24. Excerpts:

IIFL Group has no plans to become a bank
A once serious banking aspirant now sees no need for it to succeed in the financial services industry. In an exclusive interaction with businessline, Nirmal Jain, founder of IIFL group and Managing Director of IIFL Finance, says, “We have to revalidate whether it makes sense to become a bank, because you can digitally connect with fintech partners and banks. Right now, we don’t have plans to become a bank, but we will evaluate it at the right time.”

WhatsApp adds rival payment options in India commerce push
WhatsApp said on Wednesday that it will offer credit card payments and services from rival digital payment providers within its app in India, the latest bet by the Meta Platforms Inc.-owned service to boost commerce offerings in its biggest market.

Perfios acquires open finance platform Fego.ai
New Delhi: Bengaluru-based fintech firm Perfios has acquired Chennai-based open finance platform Fego.ai, two people aware of the development told Mint.

UPI paving the way for seamless digital payment experience for foreign travelers
India’s emerging fintech landscape has been a game-changer for the way people transact in the country. With the increased use of digital payments, the country has graciously welcomed the wave of UPI (Unified Payments Interface), becoming a global leader in instant payments. Recent facts state – that India alone accounted for 40 per cent of the total digital transactions globally in 2021, paving the way for a cashless economy. 

HDFC Bank launches three digital payment products on UPI
HDFC Bank has launched three digital payment products on unified payment interface (UPI).

How Bank of Baroda customers can enable UPI LITE to make instant payments with just one tap. Step-by-step guide here
Bank of Baroda (BoB) announced that it has enabled UPI LITE - Small Value on Device Wallet. UPI LITE is a wallet that allows users to make instant, small-value digital payments with only one tap without the use of a UPI PIN. “UPI is today one of the most preferred digital payment modes for consumers given the sheer ease and convenience of making payments and the superior user experience along with security and interoperability features. Bank of Baroda is one of the leading UPI remitter banks and the launch of our UPI LITE facility will further accelerate the adoption of UPI and help in promoting digital financial inclusion," said Joydeep Dutta Roy, Executive Director, Bank of Baroda.

India need not rush on digital banking licences: BCG
Ruchin Goyal, Managing Director and Senior Partner, Lead-Financial Services, BCG India, and Ernest Saudjana, Managing Director and Senior Partner, Leader of Financial Institutions Practice, Asia-Pacific, discuss with businessline the changing contours of fintechs in India. Edited excerpts from an interview:

G20’s impact on cryptocurrencies: When can we see the crypto market rising?
During its G20 Presidency this year, India placed a strong focus on various subjects, including cryptocurrencies. In a world wrestling with the intricacies and potential of this emerging asset class, India has called out the need for a global framework and consensus in cryptocurrency regulation. Acknowledging the global nature of cryptocurrencies, under India's presidency, the International Monetary Fund (IMF) and Financial Stability Board (FSB) have crafted effective recommendations that safeguard investors and encourage innovation.

Bitcoin rises above $27,000 ahead of Fed decision on rates

The crypto tokens were trading mixed in Wednesday's trade ahead of the US Federal Reserve's interest rate decision. Bitcoin, XRP, Toncoin, Solana and Polygon were trading with gains, while BNB, Dogecoin, and Litecoin were trading with cuts.

Investors adopt cautious stance; debt mutual funds log Rs 25,872 crore outflow in August
New Delhi: After witnessing staggering inflow in July, debt-oriented mutual fund schemes saw a withdrawal of Rs 25,872 crore last month as investors continue to adopt a cautious stance amid the current interest rate scenario in the US.

Equity mutual funds inflows surge to ₹20,245 crore in August: Data
In August 2023, equity mutual funds experienced a significant surge in net inflows, reaching a five-month high of ₹20,245.26 crore. This marked a substantial increase compared to the ₹7,625.96 crore inflow observed in July 2023, as per data from the Association of Mutual Funds in India (AMFI). However, debt mutual funds saw outflows amounting to ₹25,872 crore during the same period. As per the AMFI data, ETFs registered an inflow of ₹1,893 crores vs ₹353 crores outflows in July.

Omkarm Capital launches AIF targeting Rs 300 crore
Homegrown alternative asset manager Omkarm Capital has come up with its recent Alternative Investment Fund (AIF) targeting Rs 300cr including a green shoe option. The fund will focus on infrastructure logistics space and has received significant interest from investors across family offices, ultra-high-net investors, and institutional investors.

Investors adopt cautious stance; debt mutual funds log Rs 25,872 crore outflow in August
After witnessing staggering inflow in July, debt-oriented mutual fund schemes saw a withdrawal of Rs 25,872 crore last month as investors continue to adopt a cautious stance amid the current interest rate scenario in the US. Out of 16 debt categories, nine of them witnessed net outflows during the month under review, data with the Association of Mutual Funds in India (Amfi) showed.

Small-cap boom drives new MF folio additions to record in Aug

The monthly folio addition by equity mutual funds was at a record 2.2 million in August 2023, the data from Association of Mutual Fund in India (AMFI) showed. The monthly addition in August was twice that of the long-term average.

MF folio addition hit a record high in August on small cap boom

The monthly folio addition by equity mutual funds was at a record 2.2 million in August 2023, the data from Association of Mutual Fund in India (AMFI) showed. The monthly addition in August was twice that of the long-term average.

These 81 equity mutual funds doubled investors’ wealth in three years

Most investors look to double their investments over a long period. Thanks to the surge in the stock market, many mutual fund investors doubled the value of their investments in three years. ETMutualFunds analysed performance of 202 equity mutual fund schemes that have been in the market for three years and found out that around 81 equity mutual funds doubled investors’ wealth in the last three years. We considered the current value a lumpsum investment made three years ago.

PE-VC investments increase to USD 5.2 billion in August as large deals shoot up
Venture capital and private equity funds' investments increased to USD 5.2 billion across 67 deals in August, a report said on Wednesday. The investments are more than double of the USD 2.3 billion witnessed in August 2022, even though the number of transactions has declined from 32 in the year-ago period, as per the monthly report by industry lobby grouping Indian Private Equity and Venture Capital Association (IVCA) and consultancy firm EY.

FIIs offload over ₹3,000 crore in Indian equities ahead of US Fed policy decision; DIIs sell over ₹500 crore
Foreign institutional investors (FIIs) offloaded money from Indian markets, exercising caution ahead of the US Federal Reserve policy decision, as Sensex and Nifty extended losses for the second straight session. The domestic institutional investors (DIIs) also sold ₹573.02 crore in Indian stocks today.

India bond yields dip; index inclusion optimism persists, Fed meet eyed
Indian government bond yields fell marginally for a second consecutive session on Wednesday, as optimism that the country's debt could be added to global bond indexes continued to aid.

Fed maintains key interest rate amid inflation moderation, signals one rate hike in current Year
Washington: The Federal Reserve left its key interest rate unchanged Wednesday for the second time in its past three meetings, a sign that it's moderating its fight against inflation as price pressures have eased. But Fed officials also signalled that they expect to raise rates once more this year.

Federal Reserve keeps rates unchanged but sees tighter policy through 2024
The Federal Open Market Committee kept its interest rates steady in a range of 5.25% to 5.5%, a 22-year high, after the end of its two-day meeting. Majority of economists polled by Bloomberg had expected the Federal Reserve to pause its interest-rate hikes, though a recent spike in oil prices has raised concerns another hike may lie ahead.