Tag: Chennai

Shriram City Union Finance disburses highest ever loan worth Rs 1,022 cr in Nov, BFSI News, ET BFSI

Personal Finance

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New Delhi, Dec 2 Shriram group’s two-wheeler financing arm Shriram City Union Finance disbursed the highest ever loans worth Rs 1,022 crore in November, the company said on Thursday. Shriram City Union Finance has disbursed the highest ever loans amounting to Rs 1,022 crore for 1.6 lakh two-wheelers in November 2021. This is the second consecutive November when the NBFC has crossed the Rs 1,000 crore disbursement mark, the company said in a release.

The Chennai-based non-banking finance company primarily caters to salaried and non-salaried buyers inclined towards the entry-segment two-wheelers, having the highest demand across categories.

“The attractive financing offers during the festive season have stood out as one of the key drivers, with an additional push by the increase in people movement and recovery in rural demand leading to elevated disbursements.

“With the increasing demand for Electric Vehicles (EVs), the NBFC foresees a rise in the average loan ticket size, which will help in touching new milestones,” Shriram City Union Finance said.

The growing demand and intuitive use of AI-powered lending interfaces have triggered mass adoption by consumers and channels, thereby creating a network effect in further adding volumes, the company said.

“Followed by their milestone of financing over one crore two-wheelers, Shriram City Union Finance is now the largest two-wheeler financer in the country, offering app-based lending, paperless receipt, and contactless loans,” it added.



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HC deplores “administrative arrogance” of SBI officials, BFSI News, ET BFSI

Banking & Finance

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Chennai, The Madras High Court has deplored the “administrative arrogance” on the part of the officials of the leading premier public sector bank State Bank of India towards its customers. What prompted Justice S M Subramaniam, who slammed the bank officials, was a statement of the officials that the customers (in this case the stamp vendors) are at liberty to approach any other bank for their transactions.

“The above statement in the counter filed by the State Bank of India is to be construed as an irresponsible one. The SBI is a public sector bank and the authorities are the public servants. The petitioners are depositing cash in the government accounts on behalf of the government through Treasury Challans issued to them.”

“The statement portrays the ‘administrative arrogance’ on the part of the authorities in exercise of their powers and the tenor of the statement is a threat to the public administration, as the stamp vendors have no option but to deposit money only in government accounts at SBI branches,” the judge said and directed its Assistant General Manager to initiate appropriate disciplinary proceedings by conducting an enquiry and find out on what circumstances such statements were allowed to be made in the counter affidavit filed before the High Court.

The judge also directed the bank’s general manager to sensitize his subordinates in this regard to develop good conduct with the customers and the citizens. These employees/officials must be reminded that from and out of the transactions through the customers and citizens, their salaries are paid. Thus, they are expected to maintain good conduct always and honour the rights of the customers, the judge added.

The judge made the observations while allowing a batch of writ petitions from the stamp vendors, who prayed that the SBI authorities waive off fully the cash handling charges collected from them in pursuant to an official communication from the State Treasury authorities issued in March 3, 2016 and consequently forbear the relevant SBI branches in the City from collecting any cash handling charges forthwith from the petitioners for purchase of stamp papers.

The judge declared the collection of cash handling charges from the stamp vendors/petitioners by the SBI as illegal and without any authority and directed it not to do so, while the stamp vendors deposit cash in government accounts through treasury challans.

The highest authority of the SBI was also directed by the judge to communicate this order, along with necessary circular/instructions, to all SBI branches and upload the same in its official website, to enable the citizens to know their rights. PTI COR SA APR APR



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Sundaram Finance to revise interest rates on deposits, BFSI News, ET BFSI

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Chennai, Aug 6

K Surendran BJP state president (File photo)

Non-banking finance company Sundaram Finance Ltd has announced a revision in interest rates on its deposits with effect from August 8, the company said on Friday. According to a company press release, the interest rate on fresh deposits and renewals stand revised to 5.50 per cent per annum as against 5.75 per cent earlier, for deposits with a tenure of 12 months

Interest rates have been revised to 5.65 per cent per annum as compared to the earlier 6 per cent, for deposits with a tenure upto 24 months.

For deposits upto 36 months, the interest rates have been revised to 5.80 per cent as against 6.25 per cent earlier, a company statement said.

For senior citizens, the interest rate on deposits have been revised to 6 per cent per annum as compared to 6.25 per cent for deposits of upto 12 months, 6.15 per cent per annum for deposits upto 24 months as compared to the earlier 6.50 per cent.

For deposits upto 36 months, the interest rates have been revised to 6.30 per cent as compared to 6.75 per cent earlier.

As on March 31, 2021, Sundaram Finance said its deposit base stood at Rs 4,021 crore.



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Lender reports net profit at Rs 111 crore, BFSI News, ET BFSI

Banking & Finance

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CHENNAI: Private sector City Union Bank has reported net profit at Rs 111.18 crore for the quarter ending March 31, 2021. The Tamil Nadu-based bank had reported a net loss at Rs 95.29 crore during corresponding quarter previous year, the City Union Bank said in a BSE filing.

For the year ending March 31, 2021, net profits of the bank grew to Rs 592.82 crore from Rs 476.31 crore.

Total income for the quarter ending March 31, 2021 was at Rs 1,121.43 crore as compared to Rs 1,220.98 crore registered in the same quarter last year.

For the year ending March 31, 2021, total income stood at Rs 4,839.45 crore as against Rs 4,848.54 crore during corresponding period last year.

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IDBI Bank settles loan with Aircel owner’s company, BFSI News, ET BFSI

Banking & Finance

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CHENNAI: IDBI Bank has said that it has accepted the one-time settlement offer by Siva Industries’s promoters — a part of Aircel owner C Sivasankaran’s group — as it would lose more money otherwise.

IDBI Bank had initiated bankruptcy proceedings against Siva Industries in 2019. The loans were availed by a group company that later merged with Siva Industries. Sivasankaran is facing investigations by the authorities for causing a loss to banks.

According to banking sources, IDBI Bank has already written to the CBI, whichhas confirmed that commercial dealings will not affect the criminal investigation process. “Recovery for the bank through one-time settlement will be higher vis-a-vis recovery through NCLT liquidation based on the valuation of assets available as security.

This OTS (one-time settlement) and exit from NCLT does not prejudice the CBI complaint. The case with CBI continues,” IDBI Bank said.

Lenders led by IDBI Bank, with claims of over ₹5,000 crore, had initiated bankruptcy proceedings against the company. International Asset Reconstruction Company held 22% of the admitted debt followed by IDBI Bank (17%) and Union Bank of India (12%). LIC, SBI, Yes Bank and Bank of India were the other lenders.

According to a report in ET, a Mauritius-based investor Royal Partners had complained that its bid for the company was deliberately ignored.

However, IDBI Bank has said that the OTS offers it a better deal.

While the insolvency process does not allow defaulting promoters to acquire their company, bankers can do a one-time settlement with lenders if enough of them agree.

IDBI Bank responded to allegations in a statement on social media where it said that although Siva Industries was referred to NCLT by lenders in July 2019, there was no successful resolution applicant.



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DBS, Kotak Bank, IDFC First may be frontrunners to buy Citi’s retail business, BFSI News, ET BFSI

Banking & Finance

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Citibank could sell its retail business in parts or as a whole with suitors ranging from local new and established lenders like Kotak Mahindra, IDFC First or even foreign banks like DBS Bank.

DBS Bank is considered one of the potential buyers of these businesses given its deep pockets and ambitions to expand in India. In November last year, the Singaporean lender completed the first of its kind RBI directed acquisition of a distressed lender taking control of Chennai based Lakshmi Vilas Bank (LVB).

DBS India has already infused more than $1 billion into India in its relatively new existence in the country and though LVB gives its wider access to South India, it may look at Citi‘s credit card portfolio to kick start that business in India. DBS does not offer credit cards in the country currently.

Kotak Mahindra Bank, which was said to be exploring an acquisition of IndusInd Bank and refused the offer for Yes Bank, could be interested in the Citi Bank assets

What’s on offer?

The consumer banking business, which includes cards and loans against property, would be around Rs 32,000 crore. It also has a huge amount of savings accounts built over the last few years, which has a lucrative liability book and also credit cards, which they were the largest among foreign banks in India.

The bank also had Rs 27,911 crore of loans to agriculture, affordable housing renewable energy and micro, small and medium enterprises (MSMEs). Of this, Rs 4,975 crore was to weaker sections, as part of Citi India’s priority sector lending obligations, results released last year showed.

Outstanding credit cards as of February stood at 2.65 million, the largest among foreign banks in India, ahead of 1.46 million by Standard Chartered and 1.56 million by Amex. Citi India had 2.9 million retail customers with 1.2 million bank accounts as of March 2020.

At the end of March 2020, Citibank served 2.9 million retail customers with 1.2 million bank accounts and 2.2 million credit card accounts.

Earlier acquisitions

Local lenders have profited from foreign banks’ exit from India over the last decade. IndusInd Bank for example brought and built up Deutsche Bank’s credit card portfolio in 2011 and followed it up by buying Royal Bank of Scotland’s (RBS) diamond financing business in 2015. Another private sector RBL Bank also started its credit card business by purchasing the portfolio from RBS in 2013.



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‘Graduates, IT professionals key crypto investors in Karnataka’

Banking & Finance

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CoinDCX, a cryptocurrency exchange and a liquidity aggregator, said it has witnessed a spike in investments in cryptocurrency from Karnataka. Graduates and IT professionals are the key crypto investors in the state.

The company said as per its internal data, majority of investors investing in cryptocurrency in Karnataka are graduates and working IT professionals. The data further states that a large section of the investors fall under the age of 35.

To ensure early adopters of cryptocurrency do not suffer fraud, the company has introduced CoinDCX Go, an easy investment platform in crypto, backed by secured features.

Sumit Gupta, CEO CoinDCX, said Bengaluru, Chennai and Hyderabad are some of the cities witnessing a rise in investment in crypto assets. Women from these cities are also increasingly investing in crypto assets, almost contributing to around 20 per cent of the pie chart.

The company recently launched app CoinDCX Go, and is trying to bridge the gap between those challenged by knowledge on crypto and those concerned by their investments’ safety and security. “CoinDCX Go app is available for Android and IoS devices and has been downloaded more than 1,50,000 times since its launch is meant for new users to come on board the crypto space,” company release said.

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