Category: Loan

Outsourcing of loan recovery not stopped but expect entities to be on right side of law: RBI

The Reserve Bank on Friday clarified that it is not against the outsourcing of recovery activities by lenders, but expects them to be undertaken on the “right side of the law”. The central bank last week barred Mahindra and Mahindra Financial Services from engaging third party agents for loan recoveries, after a video of a […]

HDFC raises lending rate by 50 bps; EMIs to increase

Mortgage lender HDFC Ltd on Friday hiked its lending rate by 50 basis points hours after the Reserve Bank raised the benchmark interest rate to tame inflation. The move would increase EMIs for housing loans by the firm. “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home […]

RBI categorises 16 large financial entities as upper-layer NBFCs

The Reserve Bank on Friday categorised 16 big non-banking financial companies, including LIC Housing Finance and Bajaj Finance, as upper-layer NBFCs that will be subject to an enhanced regulatory framework. The RBI in October 2021 announced to put in place a four-layered regulatory structure for non-banking financial companies (NBFCs) to keep a stricter vigil on […]

Loans to industry also grows in double digits

A strong revival in corporate demand in addition to steady growth in retail, agri and services loans pushed up credit growth to 16 percent in August, according to the latest data on sectoral deployment in bank credit. On a year-on-year (y-o-y) basis, non-food bank credit rose 16.0 per cent in August 2022 as compared with […]

Banks led by SBI hike lending rate by 50 bps after RBI raises policy rate

Host of lenders led by State Bank of India (SBI) and Bank of India hiked lending rates after the Reserve Bank raised the benchmark interest rate to tame inflation. The hike has been effected in their benchmark rate linked to the repo rate, which increased by half a percentage point to 5.9 per cent. Even […]

SBI moves insolvency plea against Jaiprakash Associates before NCLT

Country’s biggest lender SBI has moved the National Company Law Tribunal (NCLT) against Jaiprakash Associates Ltd for initiation of insolvency proceedings against the debt-ridden company. State Bank of India (SBI) in its plea filed before the Allahabad bench of NCLT has claimed a total default of Rs 6,893.15 crore as on September 15, 2022 from […]

Fall of industrial loan share in bank credit, personal loans up: RBI data

The Reserve Bank on Wednesday notified that the share of industrial loans in total credit has been gradually declining over the last decade while that of personal loans is on the rise As per the ‘Basic Statistical Return on Credit by Scheduled Commercial Banks (SCBs) in India – March 2022′ released by the RBI, both […]

Loan recovery agents face RBI heat for unfair practices

Rohit Bhatia (named changed) from Alwar in Rajasthan was a guarantor for a Rs 1.5 lakh home loan that his neighbour took. However, when his neighbour defaulted on the repayment for 3 months, Bhatia started getting regular calls from recovery agents. Bhatia’s case is not an isolated one as many customers and their guarantors are […]

High NPAs in education loan segment turn banks cautious

High defaults of about 8 per cent in the education loan portfolio have made banks cautious and go slow on the sanction of such credit. Non-performing assets (NPAs) in the education loan category including public sector banks’ (PSBs) were 7.82 per cent at the end of June quarter of the current financial year. Outstanding education […]

IndusInd Bank to be a large bank in 5 years with a Rs 5 lakh crore balance sheet

Private lender IndusInd Bank’s balance sheet will cross Rs 5 lakh crore in the next five years, its managing director Sumant Kathpalia told Saloni Shukla and MC Govardhana Rangan in an interview. Kathpalia also said he is not looking to grow inorganically as it will be dilutive for the bank. Edited excerpts: Credit growth is […]

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