Ask rediffGURU Reetika Sharma your insurance mutual fund and personal finance-related questions.
'When the BJP wanted the election to focus on 'ghuspathiya' and promises that look like pies in the sky, we forced them to talk about jobs, giving free 125 units of power, and addressing women's indebtedness.'
Fintech companies believe that the impact of Reserve Bank of India's order last week on unsecured loans will be visible in six to 12 months and prompt them to diversify and strengthen their secured portfolio. Fintechs which source funds through banks or non-banking finance companies (NBFCs) are looking at quickly building their secured portfolio options to at least 40 per cent of their total portfolio. "Over the medium to long term, as part of our product strategy, we are evaluating secured products which can be enabled over a digital platform" said Yogi Sadana, the founder of Zype, a lending-focussed fintech.
Industry experts estimate that demand for loans from the sector outstrips supply by more than $80 billion.
In order to promote the housing sector, Reserve Bank of India on Friday decided to rationalise risk weightage on housing loans, making the product attractive for both borrowers and lenders. With revision in the risk weightage, the requirement of capital provision for banks will come down. This will encourage banks to push housing loan products with attractive features.
UPI has catapulted India into the forefront on the global digital payments landscape. Working hand in hand, the AePS payments system is making life easy for rural folks, notes Tamal Bandyopadhyay.
'You think: Did I fail the people I had to let go? Did I promise something I couldn't deliver? That day (when we had to sack 70 people) will stay with me.'
While the stress is lower than projections, it would be higher than what we saw last year because of the pandemic: Axis.
The home loan top-up, a kind of secured multipurpose personal loan, is on the regulator's radar, points out Tamal Bandyopadhyay.
Public sector banks (PSBs) have seen a sharp drop in household deposits from 70.6 per cent to 63 per cent in contrast with private banks, which witnessed a surge from 27.1 per cent to 34.1 per cent.
'Our problem is not a budget deficit but a trust deficit. We need to trust our institutions and industries to innovate and lead. That is the way forward for India.'
India Inc, which is sitting on cash balances of 13.5 trillion, is using the funds to meet capital expenditure as well as brownfield expansion, resulting in 'anaemic' demand for bank loans, State Bank of India (SBI) chairman CS Setty said at an event on Monday. He added that a slowdown in corporate credit is mainly due to lack of demand.
In the Union Budget for Financial Year 2023-24 (FY24), Finance Minister Nirmala Sitharaman had held forth on the need for better governance and investor protection in the banking sector. She had proposed certain amendments to the Reserve Bank of India Act (RBI Act), 1934; the Banking Regulation Act (BR Act), 1949; and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
For the time being, digital lending remains a grey area, notes Tamal Bandyopadhyay.
'India is a big market for StanC, and it is also fastest growing economy in the world.'
There is a need for real-time or near real-time credit reporting, instead of the current fortnightly system, to improve underwriting precision, enable timely reflection of borrower actions such as loan closures or repayments, and deliver a superior consumer experience, Deputy Governor of the Reserve Bank of India (RBI), M Rajeshwar Rao said on Wednesday.
While a giant, it's a nimble-footed one, and is growing at a speed that even some of its private sector peers find enviable.
Between FY18 and FY24, it doubled its balance sheet. Despite being a late entrant in some segments, it has been able to grab market share, observes Tamal Bandyopadhyay.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
The relaxation shall be available till March 31, 2021.
Trump's proposed policy limits undergraduates from any one country to 5% at select top US universities, raising concerns for Indian aspirants eyeing elite colleges.
More and more banks are sensing big opportunity in the high-margin, small consumer loans business.
Loan against gold as a product is catching on fast. Let's keep the momentum going, but aim for sustainable growth. A few bad apples should not ruin the brunch, argues Tamal Bandyopadhyay.
'The kids are already used to this place. We go back and that's a different environment.' 'So, mentally, emotionally we are stressed.'
Ishwak Singh's earnestness and the rustic energy of his mates keeps Mitti engaging, even when it starts to get preachy, observes Deepa Gahlot.
'Given the lag in transmission, further softening of lending rates may happen in the coming months.'
'As these segments are growing at 25 per cent for the last three years, credit quality has been extremely good.'
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
'Look not just at the interest rate but also the processing fee.'
'Things may get much worse before they get better,' predicts Ajay Chhibber.
It is 10 years since Bandhan Financial Services became the first microfinance institution (MFI) to receive the universal bank licence. A year later, in 2015, it started operations. Bandhan's entry into banking was seen as a vote of confidence by the Reserve Bank of India (RBI) for the country's microfinance sector. Subsequently, the RBI awarded small finance bank licences to nine MFIs.
Unlike the earlier experience post the global financial crisis, where nearly 90 per cent of the restructuring happened in the corporate loans, the non-corporate segment, which includes small businesses, agricultural loans and retail lending, will account for a higher share this time.
Sushil Munhot, executive director & head-personal banking, IDBI Bank, says, "Any housing loan of up to Rs 25 lakh will come under priority sector lending, as it is to provide affordable housing. But we do no know when will it come into effect."
Indian family-run business houses have in recent years seen ugly public spats between owners over control. But metals-to-ports conglomerate Essar's Ruia family seems to be an exception. Three generations of the Ruia family - founder brother Shashi and Ravi Ruia, their children and grandchildren - continue to live under one roof and jointly run the business empire.
This case is the largest investigated by the Pandemic Response Accountability Committee Fraud Task Force to date, US Attorney for the Northern District of Texas Leigha Simonton said in a press release.
Breeders and importers of exotic dogs worried; animal rights activists say the industry needs to be tamed.
'I realised why the farmers and the rural folks are going for Trump. They are so insecure and vulnerable that anybody who is throwing a line of hope to them, they seize it.'
India needs to be technologically and militarily prepared to defend itself from both Pakistan and China, alerts Ramesh Menon.
The country's franchise industry is estimated at $24 billion with a year-on-year growth of 30 per cent.
rediffGURU Dr Ganesh Natarajan offers advice on how to build and scale your first start-up.
'Although we are facing constraints related to lending and resource mobilisation, the government is aware of these.'
