Corporates being compelled to pay higher rates on term loans of 3 years and above, struck at fixed rates a year ago.
In an affidavit filed by Union finance ministry on behalf of the Union of India, it said that the relief to all borrowers in respect of compounding of interest during the period of moratorium would be admissible to the categories specified irrespective of whether the borrowers had availed the moratorium or not.
The move will to a large extent speed up the monetary transmission process--which is banks passing on the rate cuts that the Reserve Bank announces to their borrowers without much delays--something that has been missing all these while and something that the RBI has been unhappy with.
In absolute terms, the outstanding book value of NPAs of LIC in the debt portfolio across life, pension and unit-linked funds is to the tune of Rs 32,685.39 crore at the end of December 2019.
'Despite the pandemic, we aspire to maintain the momentum of last year.'
The top court granted two weeks to the Centre and RBI to file the affidavit and place before it the decisions taken in this regard.
The Supreme Court on Wednesday said the Centre should implement "as soon as possible" the interest waiver on loans of up to Rs 2 crore under the RBI's moratorium scheme in view of the Covid-19 pandemic, saying the common man's Diwali is in the government's hands.
The financial services sector, including NBFCs and housing finance companies (HFCs), have historically been the largest borrowers from MFs.
The Supreme Court asked the Centre and the RBI on Monday to place on record the K V Kamath committee recommendations on debt restructuring in view of Covid-19 related stress on various sectors as well as the notifications and circulars issued so far on loan moratorium.
'A decade ago, even though the sentiment might have been felt in large parts of the media, it was not expressed.' 'There was a reserve and there was a culture that adhered to the principles expressed in the Constitution,' observes Aakar Patel.
The bank will give 3.25 per cent interest on savings bank deposits with a balance exceeding Rs 100,000. At present, the interest rate is 3.5 per cent.
A vast majority of borrowers are in the essential services' supply chain with tiny and micro businesses, and this has sprung back.
The government kept its nerve in the face of a massive shock. It chose not to resort to a massive fiscal stimulus. It focused instead on providing liquidity support and easing restrictions on movement in stages, observes T T Ram Mohan.
RIL's bet on burgeoning consumer base and foray into new businesses such as telecom, retail, and digital services vastly expanded its business
Vijaya Bank on Monday said it has reduced interest rates on agricultural loans by 0.5 per cent with interest for loans up to Rs 25,000 at 8.5 per cent.
It is also going for 9.5 per cent stake sale.
These businessmen represent the top five firms that have taken loans from the crisis-hit Yes Bank and these debts were either in the red or were stressed, officials said.
Arsenal manager Arsene Wenger has ruled out bringing legend Thierry Henry back to the club for a second loan spell.
After the entry of Satyanand Yajee and Sandeep Dahiya, Onkareshwar Properties got over Rs 85 cr as short-term loans in two years, reports N Sundaresha Subramanian
'There are a lot of companies that have been struggling really hard expecting to do better year after year.' 'All these people will think now, "Let me not fight any more. Let me end this".'
After the August 10 deadline, South American conglomerate Synergy Group Corp reportedly evinced interest in the airline, forcing the RP to seek lenders' nod to extend the deadline to August 31. The Synergy Group owns a majority in Colombian carrier Avianca Holdings, which has a codeshare partnership with the state-run Air India.
As on March 31, 2019, while the promoter group's stake, including individual promoter shareholders as well as group investment firms, stood at 42.71 per cent, it fell to 38.39 per cent on Tuesday.
If banks cannot charge interest from borrowers during the moratorium, who will bear that cost? Should the depositors subsidise the borrowers by foregoing interest on deposits? In that case, we will turn banking on its head! notes Tamal Bandyopadhyay.
The Governor said the MPC had voted to maintain its accommodative stance, implying more rate cuts in the future if the need arises.
A total of 22,27,506 farmers have obtained loan of about Rs 10,736 crore from cooperative banks in the state.
Under the watchful eyes of five wise men, who know the industry well, banks will not find it easy to hoodwink the system, says Tamal Bandyopadhyay.
Such cold-shoulder by banks also indicates a credit freeze that is hard to overcome, unless the government comes out with credit guarantee schemes for loans given by banks. Since that is not happening, and there is no indication of that too, banks are not willing to listen to RBI prodding.
Currently, banks follow system of internal benchmarks, including Prime Lending Rate, Benchmark Prime Lending Rate, Base rate and Marginal Cost of Funds based Lending Rate.
The country's largest commercial bank's SME advances grew nearly 23 per cent to Rs 119,676 crore last financial year.
The new telecom policy-2011 is also expected to come out with new norms for mergers and acquisitions, enhancing rural coverage, and spectrum allocation, among other things.
After rising for more than a year, short-term interest rates have started falling since the beginning of the month, thanks to improved liquidity.
Short-term loans from NBFCs can be more convenient but come at higher cost
'If the government spends Rs 10 lakh crore this year then you would be looking at a GDP growth of minus 5 per cent.' 'If you do not do this, you will be looking at GDP growth between minus nine and minus 10 per cent.'
Those who have been handed the pink slip shouldn't make too many loan queries, advises Raj Khosla.
Monetary policy easing, coupled with the relaxation of lending rules and greater election-driven fiscal spending in the first quarter of 2019, will provide some support to growth during the first half of 2019-20 fiscal
'Mostly, the relief, if needed, would be for housing loans where a person has lost a job and is unable to pay his EMI or there has been a temporary salary cut.'
The Japanese central bank on Monday unveiled new measures, entailing short-term loans worth 10 trillion yen (about $ 118 billion) to domestic financial entities, to boost sagging economic recovery.
While most households take a long-term loan, they are keen to de-leverage and pay off the loan before the completion of the term.
SBI is the third state-run lender to lower the lending rates after Indian Overseas Bank Tuesday and Bank of Maharashtra which also lowered their loan prices by 5 bps on loan tenors of one year and above, effective April 10.
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