Credit Risk

CGTMSE achieves milestone of approving 10 million guarantee to MSMEs

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on Tuesday said it has achieved a milestone of approving 1 crore guarantees to MSE beneficiaries. CGTMSE was set up by the central government and SIDBI in August 2000 to provide credit guarantees to micro and small enterprises, enabling them to access credit without the need for collateral and third-party guarantees. To mark the occasion, an event was organised, and attended by CGTMSE chairman Manoj Mittal and CEO Manish Sinha and representatives of various banks, including State Bank of India, HDFC Bank and Union Bank, and MSMEs. During the occasion, three Micro and Small Enterprises (MSE) borrowers and three prominent Member Lending Institutions (MLIs) were felicitated which have played a significant role in this achievement, CGTMSE said in a statement. Speaking at the event, Mittal emphasised the transformative impact of credit guarantees on the MSE ecosystem, enabling businesses to access funding without .

Fintech firms embrace AI for credit, payments, customer insights, more

AI models help financial institutions in understanding delinquencies and speed up disbursements

MFI lenders turn cautious, loan portfolio declines as delinquencies rise

Overleveraging by customers is a pain point in the industry, said a regulatory report in FY23

RBI report: Gap in credit, deposit growth shrinking but challenges remain

With inflation easing household consumption to growth faster in Q2

India's credit self-monitoring grows by 51%: TransUnion CIBIL report

Notably, 81 per cent of consumers from non-metro regions began monitoring their credit within six months of their first credit product

RBI expected to finalise guidelines on project loans in 2-3 months

The final project loan guidelines are likely to be announced in the next two to three months, a senior RBI official said on Thursday. The norms regarding the Expected Credit Loss (ECL)-based provisioning are in an advanced stage of discussion, the official told reporters here. The Reserve Bank of India has proposed to set aside 5 per cent of the total exposure to a project till the construction of the project is on. Fearing a hit to profits, banks have been asking for a relook into it, as per reports. The RBI official said up to 60 responses have been received on the project loans draft, and the central bank is going through all the suggestions. When asked about the timelines by when the final guidelines will come in, the official said it will take "at least 2-3 months", but did not give a specific answer on whether the guidelines will be implemented from April 1 next year onwards. To a question on the ECL framework, the official said the norms are in the "advance stages" of ...

RBI clears Tata Capital's conversion into NBFC investment credit company

The appointed date for the scheme is effective April 1 this year and is expected to take 9-12 months to consummate

Credit transactions on UPI reaching Rs 10K cr every month: NPCI chief

NPCI's "credit line on UPI", launched last year, offers low-ticket, high-volume retail loans to individuals and businesses

Water stress can take a toll on India's sovereign credit strength: Moody's

The report comes at a time when several cities in India, including the national capital Delhi, have been facing an acute water shortage

Credit offtake stays robust at nearly 16% in May, shows RBI data

The deposit mobilisation also saw an uptick at 13 per cent Y-o-Y growth against the 10.4 per cent on May 5, 2023, according to Reserve Bank of India (RBI) data

Research reports on China's bad lending data disappear on social media

At least seven research reports from mainland brokerages and securities firms that had been posted to WeChat by analysts were unavailable for viewing

47% of Indian women face challenges in getting credit: Tide report

The report further claimed that the 95 per cent of women said that they are unaware of existing government financial schemes or initiatives to leverage for their business

Amid varied risk levels, review portfolio before choosing credit risk fund

Only investors with high risk appetite should opt for them; limit allocation to 5-10%

P2P lending is risky; investors must diversify their borrower profiles

Lenders get the benefit of monthly cash flows and control, but they must avoid platforms promising high returns

UdaanCapital disburses Rs 170 cr to Saint Gobain's distribution network

"We believe in forging strong partnerships to advance our goal of building next-generation working capital products for India's trade," said Chaitanya Adapa, Head of UdaanCapital

Retail credit flows surge not resulted in stress build up: RBI report

The Indian economy was witnessing a surge in retail credit growth. The credit growth is led by a well-diversified customer base, with reasonably good financial health conditions

RBI governor Shaktikanta Das cautions against exuberance in lending

Das said the central bank had not mandated any number on credit deposit ratio, and neither do they propose to

China's top banks tighten exposure to smaller peers to curb credit risk

The two state-owned banks have decided to reduce interbank lending limits and set shorter maturity periods for smaller peers deemed high risk, said two of the sources

IBC recoveries declining, resolution timelines getting prolonged: Crisil

Introduction of a focused bankruptcy law has helped improve the credit culture in India, but the last few years have seen a decline in recoveries and the resolution timelines getting prolonged, Crisil Ratings on Friday. In a note to observe the seven years of the Insolvency and Bankruptcy Code (IBC), the rating agency said the recovery rates have fallen to 32 per cent in September 2023, from 43 per cent in March 2019. At the same time, the average resolution time has increased from 324 days to 653 days, versus the stipulated 330 days, it said. The IBC has helped in resolving debt worth Rs 3.16 lakh crore stuck in 808 cases in the past seven years, the leading credit rating agency said. Its senior director Mohit Makhija said the IBC is "the most potent code" in India's corporate loan history, which has brought a "behavioural change" in borrowers. "The fear of losing companies has led to over Rs 9 lakh crore of filed debt being settled before the cases arrived at the IBC doorstep fo

Private credit: The rise of a diverse capital solution

Private credit has the potential to serve a larger market need, supplant traditional and alternative pools of capital