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The Economic Times



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  • India’s lending crisis isn’t over. And yet, the counts financial stocks as its biggest bet.

    India is mulling a plan akin to US' Troubled Asset Relief Program to give NBFCs some headroom to lend.

    According to a statement, the book traces the evolution of online lending, highlighting the intricacies of P2P lending in the Indian context and explains the impact of regulations on the sector.

    The platform not only offers its customers an option to choose offers from different financial institutions; it also negotiates with them online on behalf of the financial institutions and customises offers according to their financing needs.

    It has recently launched All-in-One QR for merchants across the country to accept unlimited payments through Paytm Wallet, Rupay Cards and all UPI based payment apps directly into their bank account free of cost.

    Piramal Capital & Housing Finance has raised Rs 900 crore from two public sector banks — United Bank of India and Bank of India — at 8.9% for five years and Rs 500 crore from IndusInd Bank for one year at 9% to meet the obligations.

    Even though agriculture NPA was only Rs 1.1 lakh crore or 12.4 per cent of the overall NPAs in FY19, if we accounted for Rs 3.14 lakh crore worth of farm loan waivers announced in the last decade, agri NPAs/burden for the exchequer/banks could be as much as staggering Rs 4.2 lakh crore and if the latest Rs 45,000-51,000 crore of write-offs announced by Maharashtra this could be at Rs 4.7 lakh crore.

    We are in the midst of a data explosion and by one estimate, about 2.5 quintillion bytes of data created each day. In India what is more significant is the fact that a lot of new data being created about individuals largely without any digital footprint.

    Credit flow to MSMEs shrinks as lenders turn cautious owing to economic slump. The contraction in gross credit flow to the sector could be on the back of risk-averse lending by top banks as slowing consumption and stalling manufacturing growth. Between November 2018 and 2019, gross loans to micro and small industries fell 0.1%.

    Banks undertake purchase of retail pools under the securitization mode to meet their priority sector and retail lending requirements. As per central bank rules, the risk and rewards of the securitization pool is to be borne by the buyer without any recourse of credit loss to the seller.

    ICA mechanism was established to arrive at a resolution plan within a specific period (30+180 days) for any account where the borrower misses payments and is believed to be in incipient stress without formally initiating the bankruptcy process.

    Banks may migrate to cashflow-based lending for working capital loans from the earlier asset-based funding model.

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