Page 6 - Loans

RBI cautions against misleading advertisements on loan waiver offers

The Reserve Bank on Monday cautioned public not to fall prey to misleading advertisements related to loan waiver offers in print media as well as on social media platforms. In a statement, the RBI said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers. These entities, it said, seem to be actively promoting many such campaigns across the print media as well as social media platforms. There are also reports of such entities charging a service/legal fee for issuing 'debt waiver certificates' without any authority. The central bank further said that in certain locations, campaigns related to debt waiver offers are being run by a few persons, which undermine the efforts of banks in enforcing their rights. "Such entities are misrepresenting that dues to financial institutions including banks need not be repaid. Such activities undermine the stability of financial institutions and, above all, the interest of the depositors," the RBI said. RBI .

Unsecured loan concerns: Fintechs explore long-term loans after RBI alert

Meanwhile, for the past few months, the regulator has been cautious about the increase in unsecured personal loans, which can spiral into potential bad loans

RBI to unveil regulatory framework for web aggregators of loan products

Move aimed at increasing transparency and improving lending practices

Sharp downgrades likely to keep Paytm stock under pressure in market

The buy now, pay later (BNPL) business may moderate sharply with disbursements down by 15-18 per cent

'Microfinance loan portfolio stands at Rs 3.76 trn at end of Q2FY24'

Microfinance loan portfolio at the end of the second quarter of the current financial year stood at Rs 3.76 lakh crore, serving 7.1 crore borrowers, an industry body report said. According to the report prepared by Microfinance Institutions Network (MFIN), a self-regulatory body of the NBFC-MFIs, microloan disbursals during the July-September quarter of 2023-24 touched Rs 76,054 crore, as compared to Rs 71,916 crore in the same period of the previous financial year. Gross loan portfolio (GLP) of the microfinance industry stood at Rs 3.76 lakh crore, reflecting a rise of 25 per cent over the year-ago period, the report said. NBFC-MFIs totalling 91 are the largest provider of microfinance, followed by banks, small finance banks and non-banking financial institutions. In terms of regional distribution of GLP, the east, the northeast and the south account for 63 per cent of the total portfolio, the report said. Among the NBFC-MFI members of MFIN, assets under management (AUM) stood at

REC loan disbursements cross Rs 1 lakh mark for the first time in a year

State-owned non-banking finance firm REC on Friday said that the company has crossed loan disbursement of Rs 1 lakh crore during April-November this fiscal against Rs 46,075 crore in the same period a year ago. "For the first time, REC crossed disbursement of Rs 1,00,000 crore in a year. In the corresponding period of eight months of FY 2022-23 the disbursement was Rs 46,075 crore," a regulatory filing stated. The REC, earlier known as Rural Electrification Corporation, is a Maharatna CPSE established in 1969, under the Ministry of Power. The company provides long-term loans and other finance products for power infrastructure sector. More recently REC diversified into the non-power Infrastructure sector comprising of roads & expressways, metro rail, airports, IT communication, social & commercial infrastructure, ports and electro-mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc. The loan book of REC exceeds Rs 4,74,275 crore, a statement

ITC launches app to provide crop advisory, market access to Bengal farmers

ITC Limited on Wednesday launched a mobile application to provide crop advisory, market access and financial services to the farmers of West Bengal. ITC chairman Sanjiv Puri launched the ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) application on the concluding day of the Bengal Global Business Summit (BGBS) here. He said the application, on which services would be available in Bengali, would offer world-class technologies and services to farmers in partnership with a large number of leading players in the agri sector, besides banks, institutes and technology firms. Puri said ITC aims to reach out to five lakh farmers over time. He said that ITC's agri business already has a significant presence in the state, where it works with nearly 1.7 lakh farmers, introducing new crop varieties, promoting crop development for enhancing quality and improvement in yield, besides providing advisory and other services.

Mis-selling trap; air purifier basics: Top personal finance stories

Our pick this week explains when you must say no to your relationship manager and what the best purifiers do

Oyo's loan prepayment: Moody's nearly doubles the EBITDA estimates

Fitch said that the move will improve Oyo's EBITDA and that they may take positive rating action

NBFC assets to grow 25-30% in FY24-25, caution on unsecured loans: Icra

Non-bank lenders are set to report growth of 25-30 per cent in their Assets Under Management (AUMs) in FY24 and FY25, a domestic rating agency said on Thursday. Icra Ratings, which made the growth estimate for Non-Banking Financial Companies (NBFCs) having AUMs of up to Rs 10,000 crore, said unsecured loans need to be monitored going forward. "High growth in the past and the expected AUM expansion going forward, shall keep the portfolio seasoning at low levels, especially for the long-tail loans, namely affordable housing and secured business loans," it said in a report. Its co-group head for financial sector ratings A M Karthik said the agency assessed the performance of about 105 medium and small NBFCs, accounting for about 14 per cent of the NBFC industry AUM as of March this year. On the asset quality front, the agency said the reported Gross Stage 3 (GS3) of the entities it assessed was manageable at 2.6 per cent in March 2023 as against 4.2 per cent in March 2022. The same i

Will do corporate biz only to grow on retail front: PNB Housing Finance CEO

Girish Kousgi, MD & CEO of PNB Housing Finance says the plan is to grow the loan book by 17% and disbursement by 22-23% in the current financial year

Manappuram Finance beats Q2 profit estimates, up 37% on high loan demand

Gold prices hit a record high earlier this year and though it saw some subsequent corrections, prices were up more than 20% year-on-year for the quarter

Pak seeks $600 mn in loans from China banks to bridge financing gap: Report

Cash-strapped Pakistan has sought USD 600 million in fresh loans from two Chinese banks to bridge a big financing gap as it negotiates with the IMF for the release of the second tranche of a USD 3 billion bailout package, a media report said on Wednesday. Citing sources, The Express Tribune newspaper reported that the federal government was in negotiations with the Industrial and Commercial Bank of China (ICBC) and the Bank of China for a total loan of USD 600 million. Each bank has been approached for USD 300 million in financing. Negotiations are at an advanced stage and loans are expected to be received by next month, according to officials of the finance ministry. Ministry of Finance spokesman Qamar Abbasi did not respond to queries, the report said. Abbasi also did not respond to a query on whether Pakistan had sought another loan from the State Administration of Foreign Exchange (SAFE) of China. SAFE has already given USD 4 billion in loans that are rescheduled every year due

Rs 2,000 crore loans to Go First are now NPA: Central Bank of India

The public sector lender's exposure, including government-guaranteed emergency credit to the ailing airline, amounts to about Rs 2,000 crore

Adani Group closes in on $3.5 billion loan to refinance existing debt

The deal, which would be among the top 10 biggest loans in Asia this year, could be sealed this week, according to people familiar with the matter

South Indian Bank Q2 results: Net profit jumps over 23% to Rs 275 cr

South Indian Bank on Thursday reported a 23 per cent rise in net profit to Rs 275 crore for the September quarter as provisions for bad loans came down significantly. The lender had posted a net profit of Rs 223 crore in the year-ago period. During the July-September period, total income increased to Rs 2,485 crore as against Rs 1,995 crore in the same quarter a year ago, South Indian Bank said in a regulatory filing. The interest income grew to Rs 2,129 crore from Rs 1,740 crore in the corresponding quarter a year ago. The lender's asset quality improved as gross non-performing assets (NPAs) fell to 4.96 per cent of gross advances as of September 2023 over 5.67 per cent by the end of September 2022. Net NPAs (bad loans) declined to 1.70 per cent as against 2.51 per cent at the end of the second quarter of the previous fiscal. As a result, provisions for bad loans and contingencies fell to Rs 51 crore during the quarter as compared to Rs 179.29 crore reserved for the year-ago per

IndusInd Bank Q2 results: Net profit jumps 22% on robust growth in loans

(Reuters) -Indian private lender IndusInd Bank reported a 22.1% rise in second-quarter profit on Wednesday, helped by robust growth in loans and core lending income.

Bajaj Finance Q2 results: Consolidated PAT rises 28% to Rs 3,551 crore

Loan losses and provisions grew nearly 47% year-on-year in the quarter to Rs 1,077 crore, up from Rs 734 crore a year ago

Fintech firms are back to business by wooing audience in small markets

Sector's growth mirrors growth in the broader credit market but it faces greater regulatory scrutiny

Reserve Bank of India's lens on rising unsecured loans in banking system

According to RBI's latest Financial Stability Report, advances for unsecured retail loans rose to 25.2 per cent in March 2023 from 22.9 per cent in March 2021