RBI’s tightening of lending norms: Unsecured retail loans to witness slower growth of 20-30% in FY24, say experts
Unsecured retail loans are likely to witness slower growth of 20-30 per cent in comparison to 45 per cent as non-banking financial companies (NBFC) alter their strategies due to the recent regulatory measures issued by the Reserve Bank of India, said Crisil Ratings. It further added, “Assets under management (AUM) of non-banking financial companies (NBFCs) are set to log a healthy 14-17 per cent growth next fiscal on the back of continued strong credit demand across retail loan segments. Growth may be moderately lower than 16-18 per cent expected in the current fiscal, as unsecured retail loans, the fastest growing segment in the NBFC AUM pie so far, are likely to see a relatively slower growth. Going forward, diversification in product offerings and funding profile will be key constituents of their growth strategy.”

RBI fines Bank of America, N.A., HDFC Bank
The Reserve Bank on Thursday said it has imposed a penalty of Rs 10,000 each on Bank of America, N.A. and HDFC Bank Ltd for violation of certain norms. The penalty on Bank of America, N.A. has been imposed for violation of Reserve Bank of India's instructions on reporting requirements under Liberalised Remittance Scheme of FEMA 1999, it said in a statement.

RBI imposes monetary penalty on five co-operative banks. Details here
The Reserve Bank has imposed monetary penalties on five co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: The Patliputra Central Cooperative Bank Ltd, Patan Nagarik Sahakari Bank Ltd, The Mandal Nagarik Sahakari Bank Ltd, The Balasore Bhadrak Central Co-operative Bank Ltd, the Dhrangadhra People’s Co-operative Bank Ltd

Clarify GST on NBFCs’ co-lending, FIDC asks CBIC
The Finance Industry Development Council (FIDC), a non-bank lender body, has urged the Central Board of Indirect Taxes and Customs (CBIC) to clarify that the excess rate of interest retained by an NBFC in a co-lending model with banks is exempt from goods and services tax.

Banks’ non-food credit growth moderated to 15.3% in Oct
Mumbai: Non-food bank credit growth moderated to 15.3 per cent year-on-year in October 2023 as compared with 18.3 per cent a year ago due to a sharp decline in credit to industry and deceleration in credit to the services and personal loans sectors, as per RBI data on Sectoral Deployment of Bank Credit.

Credit to industry decelerates to 5.4% in October: Reserve Bank data
Mumbai: Bank credit to industry decelerated to 5.4 per cent in October compared to 13.5 per cent in the year-ago month, according to data released by Reserve Bank of India on Thursday. The data also revealed that credit growth to agriculture and allied activities improved to 17.5 per cent (year-on-year) in October 2023 from 13.8 per cent a year ago. Among major industries, credit growth (year-on-year) to basic metal & metal products, food processing and textiles accelerated in October 2023, while that to all engineering, chemicals and chemical products and infrastructure decelerated.

Advances to the services sector grew by 20.1 per cent (y-o-y) in October 2023 compared to 22.5 per cent a year ago, with non-banking financial companies (NBFCs) and trade being the major contributors. Further, personal loan growth decelerated to 18 per cent annually in October 2023 against 20.5 per cent a year ago. On a year-on-year basis, non-food bank credit2 registered a growth of 15.3 per cent in October 2023 compared to 18.3 per cent in the year-ago period. According to the Reserve Bank of India, data on sectoral deployment of bank credit for October 2023 is collected from 41 select banks, accounting for about 95 per cent of the total non-food credit deployed by all commercial banks.

CSB Bank promoter gets RBI nod to retain 26% stake in lender
The promoter of India's CSB Bank has received approval from the Reserve Bank of India to retain a 26% stake in the lender, instead of 15% as advised by the central bank earlier, CSB said on Thursday.

Bandhan looks to sell Rs 775-cr stressed home loan portfolio
Mumbai: Bandhan Bank has invited offers for its ₹775-crore distressed affordable housing loan portfolio, likely an indicator of the emerging stress among the lower-income group, said people with knowledge of the offers.

Federal Bank announces strategic collaboration with NeML for enhanced e-procurement, e-auction integration
Federal Bank has announced a collaboration with NCDEX E-Markets Limited (NeML) to fortify the integration of e-procurement and e-auction systems. NeML, a wholly owned subsidiary of National Commodity & Derivatives Exchange Limited (NCDEX), holds a commanding market share in transparent price discovery across more than 90 commodities. 

Indian banks set a decadal record with 123,000 hirings in FY23

Mumbai: Indian banks witnessed their highest hiring numbers in a decade in FY23, and the trend is expected to continue in FY24, with top banking sector officials expecting a surge in headcount growth. This growth is likely to surpass the previous year's record and potentially set an all-time high.

​Lending rates rise faster than deposit rates in October

Bank lending rates rose sequentially at a faster pace than their deposit rates in October,data released by RBI indicates. While lending rates rose up to 12 bps, deposit rates were up only 6 bps.

Ujjivan Small Finance Bank opens branch in Vijayawada
 

Status quo on rates and stance in December monetary policy likely: Upasana Chachra, Morgan Stanley
Upasana Chachra, Chief India Economist, Morgan Stanley, says “for the upcoming December policy, we expect a status quo on rates and stance. It may continue to sound cautious given that external risk factors are still there and the uncertainty around those is still present and therefore we think that the way RBI has been indicating that it will use liquidity management as a tool to manage overnight call rates. That is the strategy which will be employed going forward as well. As such, there are no changes from a rates or a stance perspective in the upcoming policy.

RBI fines Rs 11,83,000 crore market cap bank for violation regarding deposits from non-residents
The Reserve Bank on Thursday said it has imposed a penalty of Rs 10,000 each on Bank of America, N.A. And HDFC Bank Ltd for violation of certain norms. The central bank said the penalty on HDFC Bank is for violation of directions on acceptance of deposits from non-residents. The bank has a market capitalisation of Rs 11,83,000 crore as of November 30.

Manappuram Finance shines on non-gold loan shift
With domestic gold prices hovering near record highs, shares of Manappuram Finance Ltd and Muthoot Finance Ltd, two major non-banking gold financiers, have been shining. But one of them has sharply outperformed the other. Over the last six months, Manappuram Finance Ltd's shares have gained over 40%, while its larger peer Muthoot Finance Ltd has seen only a 27% rise.

Shriram founder bats for a paradigm shift in business
Mumbai : The Shriram Group will need to shift its focus from its mainstay lending business to insurance amid tighter regulation and rising competition from banks, said R. Thyagarajan, who founded the financial conglomerate as a chit fund nearly half a century ago.

Godrej Capital Nirmaan partners with DBS Bank India, Visa and Amazon to aid MSME growth
In a move aimed at widening its horizon, Godrej Capital Nirmaan on Thursday announced partnership with DBS Bank India, Visa and Amazon to aid MSME growth.

Loans to NBFCs, trade and retail drive credit growth in October

Credit growth moderated in October as lending to all major sectors including retail, industry and loans to services slowed down as also due to the merger impact of HDFC with HDFC Bank.

Ola Cabs to launch in-app UPI transactions
Ola Cabs has announced that it is revamping its digital payments experience, where users will be able to use UPI to pay the driver directly through the Ola app. The feature will launch in Bengaluru by the end of this week and is expected to be rolled out pan-India over the course of December, CEO Bhavish Aggarwal said on Thursday.

Fintech MODIFI aims $4.5 billion in SME cross border finance in 5 years
Global fintech player MODIFI is aiming to increase its small and medium-sized enterprises (SME) cross border finance book to $4.5 billion in next five years, from $2 billion currently, co-founder and CEO Nelson Holzner told FE.

PhonePe Indus Appstore onboards major game developers
 

Bitcoin holds near $38,000; Solana, Avalanche rise up to 3%

Major cryptocurrencies were trading mixed on Thursday. Bitcoin (-0.08%), Ethereum (-1%), BNB (-0.8%), Polkadot (-2.1), and Shiba Inu (-1.4%) were trading in the red, while Solana (3.3%), Dogecoin (0.5%), Toncoin (0.3%), Polygon (1%), and Avalanche (2.6%) were trading in the green.

10 equity funds multiplied wealth by 3.5x in seven years

Around 10 equity mutual fund schemes have multiplied investors’ wealth by approximately 3.5 times in a seven year period on lumpsum investments, data crunching by ETMutualFunds showed. ETMutualFunds looked at the performance of 162 equity schemes that have completed seven years in the market.

Mission1 Investments completes 23% stake acquisition in Shriram AMC
Mission1 Investments LLC has completed the acquisition of a 23 per cent stake in Shriram Asset Management Company Limited by converting its securities into equity shares, now holding 29,94,349 equity shares in Shriram AMC. The Securities Issue Committee of Shriram AMC’s Board of Directors allotted 49,11,021 equity shares in exchange for the conversion of Mission1 Investments LLC and Shriram Credit Company Limited securities. 

US yields rise after data; 10-yr eyes biggest monthly drop in 12 years
New York: U.S. Treasury yields climbed on Thursday, even after economic data on consumer spending and inflation provided more evidence the Federal Reserve could cease hiking interest rates, but the benchmark 10-year US Treasury yield was poised for its biggest monthly drop since August 2011.

India benchmark yield sees biggest monthly drop in six in Nov
India's benchmark bond yield posted its biggest monthly drop in six in November, tracking a plunge in U.S. Treasury yields, as investors turn to central bank monetary polices in the last month of the year.

SBI plans AT-1 bond raise of up to Rs 5,000 cr as credit growth surges

Mumbai: State Bank of India, the country's largest lender by share in outstanding bank loans, may consider raising funds through additional tier-1 (AT-1) bonds toward the end of December to augment its capital base at a time when demand for credit remains strong in Asia's No. 3 economy.