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Shritama Bose

Articles By Shritama Bose

578 Articles

Reliance set to take over JBF Industries with CFM ARC

Bankers had sought takeover bids in July, and the Ahmedabad-based CFM ARC is understood to have put in a `825-crore bid for the company, which owes its lenders Rs 2,116 crore.

Emails sent to RIL, CFM ARC and Bank of Baroda remained unanswered till the time of going to press.

Banks look to resolve large assets even as NARCL gets set up

Some cases understood to be under consideration for transfer to the NARCL list are already undergoing insolvency proceedings such as Amtek Auto, Castex Technologies, JP Infra, Videocon Oil Ventures and Lavasa Corporation.

Along with NARCL, India Debt Resolution Company Ltd (IDRCL), has also been set up, it will then try to sell the stressed assets in the market.

Bank loans to NBFCs grow slower as credit to small lenders dries up

Credit outstanding to non-bank lenders has been growing in the low single digits through much of the current year, with banks’ NBFC book actually shrinking 2.2% y-o-y in June 2021.

The issue will open on September 27, 2021, and close on October 18, 2021, with an option of early closure.

Industry view: Tokenisation circular modifications give banks more control over card data

The tokenisation or encryption of card data shall be done with explicit customer consent with an additional factor of authentication (AFA) validation by the card issuer.

The facility of tokenisation shall be offered by TSPs only for the cards issued by them, and the ability to tokenise and de-tokenise card data shall be with the same TSP.

Customer cash flows are better now, but not enough to clear all past dues, says Ramesh Iyer, vice-chairman & MD, Mahindra Finance

The weakness is on an overall basis, but if you look at markets most relevant from the perspective of cropping, like Maharashtra and Madhya Pradesh, they have got average-plus (rainfall), he said.

I was always hopeful that the post-monsoon festival season will be a buoyant one, and I continue to hold that view.

IDBI Bank-led consortium seeks EoIs to sell exposure to IVRCL road asset

IVRCL was among the companies named by the Reserve Bank of India (RBI) in 2017 in its second list of bad assets to be resolved under the insolvency code.

IDBI bank

Indian Banks’ Association requests RBI to exempt govt accounts from current accounts circular

“The purpose of the circular is to prevent siphoning off funds given by banks. In the case of the government, that can hardly be considered a risk. That is why we have asked for an exemption,” the banker said.

Emails sent to the IBA and the RBI remained unanswered till the time of going to press.

Credit to large industry falls for eleventh month in a row

Last month, State Bank of India (SBI) chairman Dinesh Khara said sanctioned limits are still under-utilised to the extent of 25%. Similarly, banks with a significant presence in corporate lending, such as Bank of Baroda (BoB)

Analysts have attributed the shrinkage in credit to large industry to lower utilisation of sanctioned limits and reduction in exposures by banks.

Home loan defaults: Demand, possession, auction notices on the rise as delinquencies climb

A similar trend of auction notices had been observed in the January-March quarter with respect to gold loans. Thereafter, most lenders with a sizeable gold loan portfolio reported a deterioration in asset quality in that segm

Historically, a home loan is considered the safest variety of credit because there is a security attached to it and most borrowers want to avoid losing their homes.

Banks take ‘buy now pay later’ route to grow customer base

Both strategies are aimed at analysing behavioural trends among the younger segment of the population, many of whom have been introduced to deferred payments through the BNPL route. Most of them do not have a credit card or a

Earlier, the option was available only at particular outlets based on a tie-up between the merchant and the bank.

Microfinance institutions look at new ways to boost collections

Lenders have now begun to team up with fintech players and payment gateway companies to digitise some aspects of the collection process. The aim here is to ensure repayments are not hurt even when group meetings cannot be hel

Suryoday SFB took the route of funding its customers through its overdraft facility, where the customer is charged only on the amount withdrawn by them from the account.

Credit shrinks less in second Covid wave due to localised lockdowns

In a report dated August 16, Nomura said that its India business resumption index (NIBRI) took less than three months to cross 100 after the second wave, whereas it had taken nearly 10 months to crawl back towards the 100-mar

The first half of the financial year typically sees muted loan growth before the busy season begins with the festive season.

Yes Bank scouts for partner to set up asset reconstruction firm

Bidders must have global experience in the distressed assets space, and a track record of turning around or resolving non-performing assets (NPAs), apart from satisfying the central bank’s ‘fit and proper’ criteria.

High stress: PSBs set aside over 60% of operating profit as provisions

Bankers say the first quarter saw stress mounting in the retail and small business segments as a result of the second Covid wave.

The road ahead for overall asset quality remains uncertain and would depend on the likely emergence of a new wave of the pandemic.

Lenders in talks with Future Group to find alternatives

Lenders had been hopeful of a takeover of the company by Reliance Retail before that date

The fight between Future Group and Amazon has been going on since October 25, 2020, when the Singapore’s Emergency Arbitrator passed an interim order restraining FRL from going ahead with its deal with Reliance Retail.

‘We believe liquidity scenario should change in next few months’

Given the fact that there’s abundance of liquidity and pricing is under pressure on the corporate side, we have focused on growth on the retail side.

That was the one-off which I believe should now start changing, and we should be getting back to normal operations in terms of how people behave, given their credit scores.

RBI monitoring stress in retail, MSME segments: Deputy governor MK Jain

The deputy governor pointed out that in the past, the central bank had advised all regulated entities to improve their provisions in the wake of Covid, and banks have heeded that call.

On comparing the results of banks from the pre-Covid days with their numbers in March 2021, one can see an improvement in all the parameters with regard to the capital adequacy ratio, Jain said.

Our provision numbers will fall to just 2% of advances eventually: V Vaidyanathan, CEO, IDFC First Bank

A quarter ago, we brought down the interest rate on savings accounts from 6% to peak rate of 5%. Therefore, we have suddenly become competitive in the prime home loan segment.

Covid impact: Banks see slippages rise in cash collection-driven segments

Chairman Dinesh Khara attributed the high NPA ratio in gold loans to the inability of collection staff to reach borrowers amid mobility restrictions.

The road ahead for overall asset quality remains uncertain and would depend on the likely emergence of a new wave of the pandemic.

RBI’s current accounts circular faces scrutiny in Kerala HC

The circular mandated each bank to close current accounts of borrowers to whom the bank’s exposure was less than 10% of its total borrowings. The deadline for complying with the circular, which was aimed at preventing fraud

Earlier, in interim orders dated July 26 and July 27, the Kerala HC had said status quo must be maintained on the current accounts held by GEO VPL Finance and Muthoot Fincorp, respectively.

Rs 99,000-crore booster: Bumper dividend for govt from RBI

The Union government had budgeted a total Rs 1 lakh crore worth of earnings by way of total dividend from RBI and public-sector enterprises in FY22. The quantum of the RBI’s surplus transfer will likely ensure that the gove

RBI

We are heading towards gross NPAs of 2% on a sustainable basis: V Vaidyanathan, MD & CEO, IDFC First Bank

There is a lockdown-like situation in 20-odd cities of the country. Obviously, mobility is affected as are many businesses. The full impact of this on all players will show up only in the next one or two quarters.

Fintechs pick up MDR tab, enjoy merchant’s float

Industry sources said BharatPe and Paytm are among the companies offering this form of settlement. Emails sent to the two companies did not elicit responses till the time of going to press.

To be sure, merchants would opt for a waiver of the MDR, typically 2-3% on the value of the purchase, only if they are severely strapped for cash. Else, it would not make sense for them to give up the float.

Loan recasts: Small borrowers get fresh relief from RBI

Individuals and small businesses with loans of up to Rs 25 crore who have never undergone restructuring before and who were classified as standard as on March 31, 2021, shall be eligible under the new scheme, titled resolutio

The point is retail investors need to fend for themselves; it is not the regulator’s job to advise them.

‘We will expand pan-India digitally’

At the moment our cost of funds is between 6 and 6.5% and we expect it to fall as more CASA (current account savings account) becomes available to the bank in terms of government and institutional deposits.

We will also have more opportunities to lend at a lower rate in terms of government-sponsored schemes and availability of refinance.

‘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.
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