Page 2 - Credit Risk

Transmission remains incomplete amid calibrated liquidity management: RBI

However, the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, the report said

Credit formalisation, state welfare transforming labour markets: SBI report

Self-employment has improved as government programmes take care of primary subsistence needs, it says

Unsecured retail loans burgeoned on banks' books in Covid-19's aftermath

In services, commercial realty offtake showed a rising offtake with 8.6 per cent YTD growth in H1FY24. Transport operators saw the same with 8.9 per cent YTD growth

CICs to pay Rs 100 per day to customers for credit info updation delay: RBI

Credit information companies (CICs) will have to pay a compensation of Rs 100 per day to customers for delays in updation or rectification of their credit information, the Reserve Bank said on Thursday. Credit institutions (CIs) and credit information companies (CICs) have been given six months to put in place the necessary systems and processes to implement the 'Framework for compensation to customers for delayed updation/rectification of credit information'. In a circular, the Reserve Bank directed CICs and CIs to implement the compensation framework for delayed updation/rectification of credit information. "Complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of thirty (30) calendar days from the date of the initial filing of the complaint by the complainant with a CI/ CIC," it said. The circular further said the complainant can approach the RBI Ombudsman in case of wrongful denial of compensation by

CBI files fresh case against former PEC chief in Rs 194 cr cheating case

The CBI has filed a fresh case against former chairman and managing director of PEC Arun Kumar Mirchandani and other former officials for allegedly causing a loss of Rs 194.61 crore to the public sector company, officials said on Monday. The CBI has filed multiple cases against Mirchandani and former officials of the PEC, a government enterprise under the Ministry of Commerce that facilitates import and export of commodities and grants financial assistance to importers. In the present case, it has been alleged that Morena-based KS Oils availed financial assistance from PEC Ltd for the import of crude edible oil under the foreign letter of credit (FLC) process entering into associateship agreements. KS Oils had secured the financing aid through seven letters of credit established in 2012-13, for which it submitted post-dated cheques (PDCs) as security. Letters of credit (LC) are a guarantee that a bank gives on behalf of its customer to honour the payment commitment. PEC took the ..

No signs of systemic risk build-up in bank credit: RBI's Michael Patra

The deputy governor also said that the ongoing surge in bank credit expansion is primarily driven by retail loans

Morgan Stanley sees tipping point in carbon credits as prices sink

The voluntary carbon market (VCM) has been gripped by a steady stream of scandals, leading to wild price swings and even collapsing valuations

PSB Alliance enters supply chain financing, ties up with Veefin Solutions

The PSB Alliance, an entity floated by 12 public sector banks in 2022, is entering the supply chain financing to primarily help small businesses, and aims to tap 5 per cent of the total credit market. The overall bank credit rose 14.5 per cent on-year in the week ending July 28 to Rs 148.2 lakh crore. Of this, pure-play supply chain finance from banks is only around Rs 1 lakh crore and the alliance over the next 3-4 years seeks to increase to at least 5 per cent of the total system-wide bank credit. At the current volume of bank credit, the 5 per cent works out to be around Rs 7.5 lakh crore. The PSB Alliance is promoted by 12 state-run banks with each of them owning 8.33 per cent of the equity capital. It was set up with the objective of having a common IT and business process platform, the chief executive of the alliance Rajinder Mirakhur told reporters while announcing a strategic technical collaboration with a supply chain-focused fintech player Veefin Solutions led by Raja ...

Match upgraded credit card benefits with spending pattern, beware of costs

Threshold limit for waiving annual fee should not exceed spending capacity

Personal loans galore: Credit offtake to outpace deposit growth in FY24

CareEdge estimates the credit growth to be in the range of 13%-13.5% and deposit growth to be in the range of 10-10.5% during FY24.

The ECL model will not dent profits much: Karur Vysya Bank MD & CEO

We will test the waters, ferret out information through our business correspondents, and only then open a branch: B RAMESH BABU, Karur Vysya Bank MD & CEO

Banks seek one more year to prepare for ECL reporting on stressed assets

Banking regulator has indicated five-year glide path for shift to new system

Revamp of Credit Guarantee Scheme, limit on ceiling for guarantees enhanced

With a view to revamp the Credit Guarantee Scheme for Micro and Small Enterprises, Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) issued guidelines regarding reduction of annual guarantee fee for loans upto Rs 1 crore from a peak rate of 2 per cent per annum to as low as 0.37 per cent per annum.

Banks' exposure to Adani group 'insufficient' to pose credit risk: Fitch

MUMBAI (Reuters) -The exposure of banks to the embattled Adani Group is 'insufficient in itself' to present a substantial risk to credit profiles of these lenders, Fitch Ratings said in a note.

Debt fund YTMs stabilise, but peak still a few basis points away

YTMs of all debt fund categories, except credit risk and overnight, in a narrow range of 6.3-7.3%

Sebi sets lower single-issuer limits for mutual fund debt schemes

Credit-risk rating based limits introduced for all new schemes; existing schemes to be grandfathered

Credit risk not being fairly priced in by banks, says SBI report

Credit demand at decadal highs and liquidity remains significantly downsized, says research

Can financial services be made bite-sized to deepen credit penetration?

Small can be more beautiful: Large-scale sachetisation of financial services may be just around the corner

Gap between slippage and recovery has narrowed: City Union Bank CEO

The bank's share closed at Rs 179.05 a piece on BSE, down 4.7% from its previous close while the broader Sensex was down 1.46%

Credit risk and reward: P2P offers returns but needs cautious investments

Limit your allocation to 5-10% of your fixed-income portfolio and stick to highly-rated borrowers