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Shritama Bose

Articles By Shritama Bose

553 Articles

‘Data helped us expand borrower base in supplier finance segment’:

The use of data and analytics has enabled Citi to expand its borrower base in the supplier finance vertical in India, said Mridula Iyer, head - treasury & trade solutions (TTS), Citi South Asia.

Large Public Sector Banks speed up digitisation in the post-merger new normal

PSBs had a large customer base even before the mergers took place over the last few years, but the expansion in that base helps justify the cost of digitisation.

For PSBs, the need to change has become even more relevant as the mergers have expanded their scale and competition from tech-oriented players has only intensified.

RBI makes interoperability mandatory for all wallet, PPI issuers

RBI governor Shaktikanta Das expressed displeasure with the lack of effort on the part of industry players to voluntarily move towards interoperability.

The allowing of cash withdrawals from all PPIs, in conjunction with the mandate for interoperability, will boost migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier-III to -VI centres, the RBI said.

RBI announces secondary market purchase of g-secs worth Rs 1 lakh crore

To meet the funding requirements of micro, small and medium enterprises (MSMEs), the Small Industries Development Bank of India (SIDBI) will be sanctioned Rs 15,000 crore under this facility for a period of up to one year.

Such concerns gained ground when the RBI let multiple bond auctions devolve on primary dealers.

Union Bank of India looking to digitise recovery processes

Union Bank of India is looking to digitise and automate its recovery processes, according to a tender document issued by the lender.

SBI to revamp MSME lending ops to increase efficiency

“With the objective of becoming banker of choice for MSMEs, SBI intends to improve existing processes and structure in the SME space for achieving improvement in market share/enhance the portfolio while ensuring the asset q

There are four verticals in SBI’s MSME lending operations -- SME Centre and relationship managers, supply chain finance, CGTMSE and cluster financing.

‘Our credit cost will be restricted around 2.5%’

The demand has been quite good, though there was a slowdown in January. It picked up in the second half of February and March is being quite good.

Our restructuring was planned initially for around 3%, but now it looks like our restructuring would be less than 1% because many of the segments where we had initially expected challenges are now functioning normally.

NBFCs ask RBI for refinance facility to reduce dependence on banks

The NBFCs in the proposed BL (base layer) and ML (middle layer) suffer at present due to this rigidity of credit rating templates followed by the rating agencies,” the FIDC conveyed to the RBI in a letter dated February 12,

money

‘RuPay’s market share by volumes is 34%’

E-commerce is a very significant driver, but we are also seeing a lot of other interesting categories emerge. For example, we now have some of the bus transport corporations going live on UPI.

NPCI to launch new digital payments product for feature phones

March 20, 2021: In 2020, NPCI, CIIE.CO and the Bill and Melinda Gates Foundation had together launched a hackathon for the creation of a feature phone-based payments solution.

NPCI

Fix systems to reduce failures, banks urge non-bank partners

In 2020, massive on-boarding of new digital users onto payment platforms was accompanied by outages in bank systems and resultant transaction failures.

As a result, it falls to the banks to ensure the success and security of digital payment transactions.

Retail stress hits private banks hardest: Govt data

Private banks typically lend to employees from the private sector and to self-employed people, all of whom have been hit harder by the Covid-19 pandemic.

“Moratorium has delayed the stress in these segments where delinquencies have not yet stabilised, and higher loan losses are expected to materialise in FY22,” the agency said in a report.

Banks put up Rs 5,140 crore of NPAs for sale in Q4FY21

While banks have historically sold large NPAs to ARCs, this year they are looking for buyers for even smaller loans, including housing and education loans.

In reply to a question raised by a member of the Lok Sabha, minister of state for finance Anurag Singh Thakur on Monday released data on retail stressed assets in the banking system.

Stress has peaked out in microfinance: R Baskar Babu, MD & CEO, Suryoday Small Finance Bank

So as long as they are paying, it indicates that the customers will end up being good customers, except that for a two-year loan they’ll end up paying in two years and three months or four months.

Zero merchant discount rate (MDR): Peer-to-merchant (P2M) volumes more than debit cards

UPI had been known more for running up high volumes in peer-to-peer (P2P) payments with the P2M piece accounting for 20-30%. That seems to have changed with social distancing norms and lockdowns across the country compelling

As Vivek Belgavi, partner & leader - fintech, PwC India, said, the upswing in UPI P2M has come from the digitisation of offline merchants by payments and even non-payments players.

As balance transfers rise, HFCs reprise demand for foreclosure charges

The incidence of customers shifting their balances from non-banks to banks has become particularly pronounced in FY21, as the repo-linked pricing regime and huge surplus liquidity allowed banks to reduce interest rates much f

Banks admit that anywhere between 30% and 35% of their incremental home loan growth has been coming from non-banking financial companies (NBFCs) and HFCs.

We will end FY22 with Rs 6,000-crore loan book, says Ravi Subramanian, MD & CEO, Shriram Housing Finance

"We are clear that there are six states we want to dominate – AP (Andhra Pradesh)-Telangana, Tamil Nadu, Karnataka, Rajasthan, Madhya Pradesh and Chhattisgarh in the affordable housing space. In NCR (National Capital Region

So, yes, it’s a trend which I see sustaining, particularly for small and medium-ticket home loans.

Bank of Baroda document shows stress may be higher than foreseen

To be fair, the BoB management has signalled that the restructuring scheme may have been unable to address stress in the retail and micro, small and medium enterprises (MSME) segments, and there may be pain ahead.

bank of baroda

Govt to earn more from deposits by opening business to pvt banks

Mrutyunjay Mahapatra, former MD & CEO, Syndicate Bank, said that the cost of deposits for the banking system as a whole is likely to rise because the private sector banks will now compete for government deposits.

There is already a bidding system in place, but it has so far been restricted to PSBs.

Ahead of new ARC formation, Punjab National Bank to sell Arcil stake

“PNB has initiated a sale process to offer its holding of 3,25,06,486 equity shares i.e. 10.01% of the paid-up equity share capital of ARCIL (“proposed transaction”). PNB Investment Services Limited is the advisor to PN

A detailed framework for the ARC is in the works, financial services secretary Debasish Panda said earlier this month, adding that the government will not be putting in any money.

Zero-MDR regime: Govt sites skip netbanking, foreign card schemes

At the same time, the disappearance of netbanking and card payment options for a section of users is causing great inconvenience.

A Mastercard representative said the company’s team in India would respond on Thursday; the response was awaited till the time of going to press.

High volumes, multiple hops push up digital payment failures

To put this in perspective, two years ago, the amount being processed through cards was $100 billion, but today over UPI it is of the order of $1 trillion.

The multiple hops involved in each transaction increases the odds of failure and that must be corrected, said Mahesh Ramamoorthy, MD - banking solutions, FIS India.

Phased withdrawal of CRR cut, lack of OMO hints disappoint markets

Governor Shaktikanta Das observed that the market is at times prone to misjudging the RBI’s actions and reacting in haste, before arriving at a full assessment of them.

rbi

New Asset Reconstruction Committee: Banks likely to ask RBI to relax norms

The new ARC will have the advantage of the loan exposures being clubbed across banks, although this, too, is prone to challenges.

RBI

Governance structures, liability key to DFI success

Govt will have to play as provider of capital and as facilitator of policy tweaks like credit enhancements for projects financed by DFI

development finance institutions

Tax sops on affordable housing to help homebuyers, NBFCs

Union Budget 2021 India: The extension of the sops would also help improve the performance of non-bank lenders, who are the chief providers of credit to both developers and buyers of affordable homes.

Other market players observed that the extension of the tax benefits to a larger set of people will help ease the liquidity situation for households at a time of crisis.

Union Budget 2021: Recap plan, DFI to ease banks’ capital positions

Union Budget 2021 India: DFI is meant to enable PSBs to reduce exposure to infra projects and enhance credit to other industries

Union Budget 2021: Analysts said the amount allocated for recapitalisation was on expected lines.
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