Debt trap: Inside the world of shady digital lending apps, which promise a loan in a minute
According to fintech industry sources, several lenders simply register an entity under the Companies Act, develop an app and start commercial lending. They peddle 7-30-day loans at high-interest rates — often 200-500% annualised. Most of these apps, recent investigations by NGOs and advocacy groups like Cashless Consumer reveal, are Chinese white-labelled apps with Indian names. The apps are mostly hosted on Chinese servers.
Banks rely on farmers for new loans
Economists attribute this trend to farm sector doing better than the urban-centric sectors like industrie...
RBI constitutes working group on digital lending
The Reserve Bank of India (RBI) on Wednesday said that it has constituted a Working Group on...
Bank hard-sell & cheaper loans drive auto financing
Auto financiers and dealers say the current buzz is led by the aggression of PSU lenders, which are offering rates lower than private financiers. However the uptick is restricted only to passenger vehicles and not two-wheelers and commercial vehicles.
Online chit fund apps under the scanner
The government is examining complaints against some online chit fund apps, which are allegedly functioning in absence of clear regulatory guidelines. This comes as already multiple investigations are on against Chinese loan apps.
View: Bad bank is a good idea, but India's debt-laden banks need a better plan
How does one make bad loans seamlessly move from banks to investors who love dealing in junk? How does one make such deals part of a normal and liquid securities market — and not merely a parking pact among bank, ARC and promoter?
Public sector banks may follow a uniform practice on employee accountability for bad loans
Indian Banks’ Association (IBA) has formed a committee under Canara Bank ED MV Rao to look into the nuances of staff accountability. The panel will recommend steps that will be adopted by the lenders.
Axis Bank ties up with Hyundai Motor India for auto retail financing
Axis Bank through this partnership will allow Hyundai Motor India Ltd (HMIL) customers to get auto loan sanctioned directly on the car maker's end-to-end online retail platform 'Click to Buy' (CTB), a release said.
Banks need Rs one lakh crore for NPAs, growth, says Reserve Bank of India
According to the RBI, gross non-performing assets (NPAs) declined from 9.1% as of March 2019 to 8.2% at end-March 2020 and further down to 7.5% in end-September 2020.
Loan restructuring requests much lower than estimated: Analysts
Analysts are also forecasting lower credit provisions and better profitability for banks in the next fiscal year starting April 1, on the back of improved asset quality with a quick economic turnaround.
Asset management firm in the works to tackle bad loans of PSU banks
The proposed AMC will work on a fee-based model. It will collate bad debt across banks and reach out to institutional investors, including distressed funds. Once the AMC secures funding for the collated asset, it will engage with ARCs to turn around the asset.
2021: Banks brace for pandemic-hit corporates' bad loan woes, muted credit growth
Muted private investment impacting the corporate loan growth will be another challenge that banks will have to face in the coming months. Despite ample liquidity in the system, demand from the corporate sector is very low and bankers hope that faster than anticipated recovery could bring in the animal spirit as far as India Inc in concerned.
RBI unlikely to extend Dec 31 loan rejig deadline
The governor on Wednesday concluded a two-day meeting with public sector and private sector banks, held through video conference. Days before banks closed their books for the third quarter, Das asked them to make enough provisions should loans go bad. He also asked banks to raise more capital to grow loans.
IIFL Home, ICICI Bank join hands for affordable housing, MSME loans
Under the tie-up, IFL Home will originate and service customers through the entire loan life-cycle including sourcing, documentation, collection and loan servicing and in turn, ICICI Bank will provide funding to these customers.
Retail loans showing some stress, but no alarm bells yet: Experts
NACH, a clearing service for interbank transactions run by the National Payments Corporation of India (NPCI), shows that bounce rates by volume have gone up to 40.5 per cent, and 31.1 per cent by value.