Page 7 - Loans

Unsecured loan growth high, RBI unlikely to put restrictions: India Ratings

Unsecured loans are on the rise, but the Reserve Bank is unlikely to put regulations to curb the same, a top official of India Ratings and Research said on Wednesday. The domestic credit rating agency, a part of the Fitch Group, feels there are no issues on asset quality as a result of the fast-paced growth in the portfolios as yet, its head for financial institutions Karan Gupta told reporters here. Gupta said most of the unsecured lending by banks is to salaried individuals, especially ones with whom banks already have a long relationship, giving them a look into cash flows while making the lending calls, he said, adding events like major job losses can hurt the asset quality. It can be noted that banks have been reporting very high growth in the retail unsecured books for the last few months, leading to concerns over its possible impact on asset quality. RBI's financial stability report also flagged the risk, pointing out that the credit card NPAs for state-run lenders is over 16

Rs 4,500 crore disbursed in September at 11% YoY growth: Mahindra Finance

For the first half of FY2024, Rs 25,500 crore was disbursed, leading to a growth of 20 per cent YoY

Exporters seek govt intervention in providing affordable credit to MSMEs

Exporters have sought the central government's intervention in providing affordable and easy availability of credit to MSMEs amid global headwinds due to lack of liquidity. In a letter to Finance Minister Nirmala Sitharaman, apex exporters' body Federation of Indian Export Organisations (FIEO) requested for the extension of Emergency Credit Linked Guarantee Scheme (ECLGS) till March 31, 2024 and restoration of interest subsidy benefit of 5 per cent to manufacturer MSMEs. It said some of the MSME sectors are affected due to a dip in exports on account of a global demand slowdown. FIEO has urged extending the ECLGS "till March 31, 2024" as it will help micro, small and medium enterprises sail through this difficult time and bounce back when the situation improves. "With interest rates firming up, MSMEs are getting credit at not less than 8-11 per cent. The subvention for the interest equalisation scheme was reduced as interest rates were coming down. However with complete change in .

L&T Finance to provide up to 100% loan on Ather EV's on-road price

The amount of loan being financed will be determined based on the credit profile of the customer of Ather Energy

Massive write-offs, low recovery ailing banking sector: Amit Mitra

Principal chief advisor to West Bengal chief minister Amit Mitra said on Thursday that massive write-offs in the last nine years and low recovery is presently ailing the banking sector of the country. Speaking at a CII banking session here, Mitra said that in the last nine years from 2014-2023, Rs 14.56 lakh crore has been written off from the books of the banks. During 2021-22, the written-off amount was Rs 1.75 lakh crore, and subsequently Rs 2.09 lakh crore in the succeeding fiscal. Mitra, also the former finance minister of the West Bengal government, said that union minister of state for finance Bhagwat Karad had informed Parliament that out of the total written-off amount of Rs 14.56 lakh crore, Rs 7.40 lakh crore are for large industry and services segments. He said, however, the recovery had been low to the tune of Rs 2.04 lakh crore out of Rs 14.56 lakh crore, which means more than Rs 12 lakh crore is yet to be recovered. According to him, the amount of write-offs in the

TruCap, HDFC Bank form co-lending tie-up for underserved MSME borrowers

Industry estimates indicate that the MSME sector has an overall credit demand of Rs 69.3 trn, growing at a CAGR of 11.5%

Torrent in talks with Apollo to borrow up to $1 bn for Cipla bid: Reports

Torrent has also been in talks with CVC Capital Partners and Bain Capital who might become equity partners in a consortium and contribute as much as a combined $1.5 billion to the deal, sources said

REC clears Rs 6,075 cr loan to Greenko, Rs 3,081 cr to Serentica Renewables

State-run REC Ltd has sanctioned a Rs 6,075-crore loan to renewable energy company Greenko for setting up a 1,440-MW standalone pumped storage project. REC has also sanctioned debt funding of more than Rs 3,081 crore to renewable energy company Serentica Renewables for its 560 MW peak greenfield solar-wind hybrid project in the Gadag district of Karnataka. The REC is on a trajectory to achieve a green finance loan book of Rs 3 lakh Crore by the fiscal year 2030, a statement said. REC is an NBFC focusing on power sector financing and development across India. It provides financial assistance to the complete power-sector value chain, for various types of projects including generation, transmission & distribution and renewable energy. REC has also diversified into non-power infrastructure and logistics sector, to cover areas such as airports, metro, railways, ports, bridges, etc.

Byju's hid $533 mn in hedge fund once run from Miami IHOP, allege lenders

"Byju's has gone to great lengths to conceal the whereabouts of borrower's $533 million for the admitted purpose of hindering and delaying" creditors, they argued in Miami-Dade County court filings

Frictionless credit initiative slashes operational costs for lenders: RBI

The frictionless credit initiative being piloted by the Reserve Bank is helping lenders slash their customer acquisition cost by a whopping 70 per cent, while for borrowers the saving is 6 per cent of the loan amount, a senior central bank official has said. The pilot started with an all-digital KCC (kisan credit card) lending, developed by the RBI Innovation Hub on the public tech platform, in Tamil Nadu and Madhya Pradesh this April. The pilot has been extended to four more states -- Maharashtra, Uttar Pradesh, Karnataka, Gujarat (for dairy farmers) from August 17 this year. The pilot launch of the public tech platform for frictionless credit to farmers has helped reduce operational costs for lenders by more than 70 per cent, while for the farmer, the saving is 6 per cent of the loan amount, Ajay Kumar Choudhary, an executive director and head of the fintech department at the RBI, said here over the weekend while addressing the three-day global fintech festival. Moreover, there i

REC gets shareholders' nod to hike overall borrowing limit to Rs 6 trn

State-owned REC Ltd has received shareholders' approval to increase the overall borrowing limit of the company from Rs 4.5 lakh crore to Rs six lakh crore in its 54th annual general meeting held on Wednesday. "All the resolutions as set out in the Notice of 54th AGM, including addendum thereof, have been duly approved & passed by the shareholders with requisite majority," a BSE filing said. The 54th AGM of REC Ltd was held on September 6, 2023. The special resolution to increase the borrowing limit of the REC from Rs 4.5 lakh crore to Rs six lakh crore was listed in the agenda of the AGM. Besides, the shareholders also approved a special resolution for raising funds through private placement of unsecured/secured non-convertible bonds/ debentures up to Rs 1,05,000 crore in one or more tranches till September 5, 2024.

Loans against mutual funds: Should you opt for it over a personal loan?

A loan against mutual funds significantly reduces the short-term borrowing (less than one year) cost

REC to increase loan portfolio of green projects to over Rs 3 trn by 2030

State-owned REC Ltd Chairman and Managing Director Vivek Kumar Dewangan on Wednesday stressed on the commitment to increase its loan book of green projects by ten times to more than Rs 3 lakh crore by 2030. Dewangan chaired the annual general meeting on Wednesday, which was attended by all directors on the board of the company. Many shareholders were present at the meeting through video conferencing. At AGM he said, "REC is committed to increase its present loan portfolio of Green Projects to the extent of more than ten times by the year 2030 amounting to Rs 3 lakh crore." The REC has been known for its rural electrification efforts; now it would be known for its Renewable Energy (RE) focused initiatives including solar, wind, hybrid and e-mobility projects, as well as new areas like green hydrogen, green amonia projects, round the clock projects involving bundling of RE with thermal power and ethanol manufacturing, he pointed out. He also said that while reposing faith in REC, th

Paytm disbursed loans worth Rs 5,517 crore in August, average MTU up 20%

In terms of the number of loans, in July and August, the company saw a 47 per cent jump from 6 million loans in 2022 to 8.8 million in 2023

Loan sanctions through NBFCs slip sharply to 5.7% in June quarter

Sequentially, the sanctioned shrunk by 20.3 per cent over the quarter ended March 2023 (Q4FY23), data from Finance Industry Development Council (FIDC)-CRIF showed

Punjab sees fivefold rise in study loans; statistics indicate exodus

Experts told Mint that the difficult job market in Punjab has led to young individuals seeking opportunities abroad

Fitch affirms SBI's long term rating at 'BBB' on asset quality, loans

Agency revises outlook for lender's asset quality score from 'stable' to 'positive'

PNB launches app to enable MSMEs access instant loans using GST invoices

State-owned Punjab National Bank (PNB) on Wednesday said it has launched a mobile application based on the GST Sahay scheme, an endto-end digital product under which lending can be done using GST invoices. With this integration, PNB has become the first public sector bank to facilitate frictionless credit flow to MSMEs using GST invoices, the bank said in a statement. The initiative is also in line with the bank's strategy to further the development of the MSME sector and digital credit ecosystem in the country. The PNB GST Sahay App makes the entire loan process digitised and helps eliminate any manual intervention for borrowers and makes the process more cost-effective, fast, and smooth, it said. Through this service, the loan amount will be directly credited into the borrower's current account with the bank. Speaking at the launch of PNB GST Sahay App, the bank's MD Atul Kumar Goel said, "our bank has been a pioneer in serving top industrialists as well as the masses and provid

JPMorgan wins court ruling that leveraged loans are not securities

The decision Thursday by the Second Circuit US Court of Appeals in Manhattan came in a securities fraud lawsuit brought by a trustee for note purchasers in a 2014 syndicated loan deal

Brics' bank can finance African countries to tackle urgent challenges

Bank's president Dilma Rousseff also pointed to the need for joint infrastructure projects between several countries, noting that Africa has the world's greatest untapped hydroelectric potential