Tag: finance

FinMin offers citizens prize money to come up with name, logo for new infra fund body

Banking & Finance

[ad_1]

Read More/Less


The Finance Ministry, in association with mygovIndia, has launched a crowdsourcing initiative to coin a name, suggest a tagline and design a logo for a newly created development financial institution (DFI).

“Name, tagline and logo should represent the intent behind setting up of the DFI and be a clear marker of what it will/can do. It should in effect be like a visual signature, easy to recall and pronounce. Each of the three elements would stand out on its own but would represent, a synergized approach,” reads the government statement on www.mygov.in.

Each category will have three prizes of ₹5 lakh, ₹3 lakh and ₹2 lakh. Entries should be submitted by August 15. “Entries will be evaluated on creativity, vibrancy, ability to connect with the theme, citizens and all stakeholders, should reflect the spirit of New India as we celebrate Azadi Ka Amrut Mahotsava with India@75,” the notification said.

Need to rethink financing and development priorities for enabling sustainable infrastructure: FM

The government has decided to create the DFI exclusively to fund infrastructure such as the proposed ₹111-lakh-crore National Infrastructure Pipeline and more than 7,000 other projects, which require timely and large funding.

Government bets big on infrastructure

According to the notification, the DFI will be a development bank with credibility and a mandate through explicit Government support. It will crowd in, not elbow out, other lenders. It will not only provide credit and credit-plus services but, equally, be an enabler and catalyst for a new ecosystem for infra based on collaboration and partnership. It will prioritise risk mitigation, product innovation, accessing green and ethical funds, and helping develop a vibrant bond market.

It would have the size and ambition to make a difference as well as play a counter-cyclical role, whenever needed. It will lend long term, for achieving financial closure for big-ticket infra projects commensurate with a $5-trillion economy. “The design of the DFI itself is path breaking and bold, representing a decisive break from conventional thinking,” the notification said.

In a tweet, the Finance Ministry said that the setting up of a DFI was announced by Finance Minister Nirmala Sitharaman in Budget 2021-22. Both Houses of Parliament passed the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in March, which was later assented to by the President.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Finance Minister Nirmala Sitharaman offers CoWIN platform to other nations for free, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Finance Minister Nirmala Sitharaman on Saturday offered to share CoWIN platform with other nations for free, saying that humanitarian needs outweigh commercial benefits.

Participating on the second day of the ongoing G20 Finance Ministers and Central Bank Governors Meeting, Sitharaman shared India’s successful experience in integrating technology with inclusive service delivery during the pandemic, the Finance Ministry said in a series of tweets.

“FM Smt. @nsitharaman shared how #CoWIN application has efficiently supported scale and scope of our vaccination & #India has made this platform freely available to all countries given our firm belief that humanitarian needs outweigh commercial benefits,” a tweet said.

During the meeting, discussions of finance ministers were focused on policies for economic recovery, sustainable finance and International Taxation.

“In policies for recovery session, FM discussed 3 catalysts of economic recovery- #Digitalization #ClimateAction & #SustainableInfrastructure; shared India’s successful experience in integrating technology with inclusive service delivery during the pandemic,” another tweet said.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

India has huge potential for growth of alternative lending: Study

Banking & Finance

[ad_1]

Read More/Less


India has a strong growth potential along with highest opportunities for alternative lending as compared to other countries in South and South-East Asia, according to a latest research by Singapore-based Robocash Group — provider of robotic financial services in the field of alternative lending and marketplace funding.

The analytical centre of international holding Robocash Group did a study to understand the growth prospects and opportunities for alternative investment in individual sub-region of Asia, Africa, Latin America – South, South-East, Central and West Asia, Latin America, and the Caribbean, North, South, East, West, and Central Africa.

The study does not include North America, Europe, Australia and Oceania, and East Asia. It also excluded Europe and other macro regions since these regions are already developed and have a low demand for alternative lending. The study said, likewise, China and the US require separate consideration as they hold a dominant presence in the macro region dynamics.

Alternative lending

The study evaluated each region on the single scale from 0 to 1. This indicator reflects multiple factors: the region’s specific traits, the attractiveness for alternative lending, as well as the current state of its development.

“Across the whole range of characteristics, South-East Asia shows the highest need for alternative lending, which is already being addressed, run a close second by South Asia,” the report said.

Alternative lending refers to any loan that is secured outside of a traditional banking channel. It includes P2P lending, Fintech among other platforms and are mostly sought after by individuals, small businesses and start-ups.

Opportunities for India

Drilling down deeper into country level data, the report said, “India features strong potential for growth of alternative lending (needs of 0.5 on a scale of 0 to 1), along with the highest opportunities across all countries analysed. India takes the largest share of the alternative lending market in South Asia – 81.3 per cent in 2018.”

The study considered population (characterised by informal employment and/or lack of access to banking services), average income in the region, and internet and smartphone penetration as the key indicators that drive the growth opportunities for alternative lending.

“Understandably, the country’s (India) characteristics are representative of the entire region. The strong potential for non-bank finance is partially realised in the previous years but remains untapped due to persistently high demand. The large pool of internet users (624 million or 29.9 per cent of users analysed across all regions) and high smartphone penetration (600.9 million, or 42 per cent of the total population of India in 2021) ensure the development of the market, both currently and in the future. Due to these factors, India takes a leading position among the countries in the considered part of the world,” it added.

The report also added that Vietnam as another country that stands for development opportunities for alternative lending due to the higher level of the internet and smartphone penetration.

“That said, India will remain the undisputed frontrunner as the opportunity for growth of non-bank financing greatly outpaces that of other countries,” it added.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Indian Bank to finance startups in Telangana

Banking & Finance

[ad_1]

Read More/Less


Indian Bank is looking forward to extend financial support to startups in Telangana and is likely to team up with T-Hub, according to its Managing Director and Chief Executive Officer, Padmaja Chunduru.

She was speaking at the formal lunch of ‘Prerana’, the flagship business mentoring programme of Indian Bank to create awareness among micro, small and medium enterprises, in Telangana on Tuesday.

“We have already started startup-financing in various States and are planning to enter into an understanding with T-Hub to do the same in Telangana,” the Indian Bank Chief said.

Prerana initiative

On the Prerana initiative, she said there were many ‘hindrances’ faced by MSMEs in the form of lack of awareness about various schemes of the government/banks, language barriers and lack of market knowledge and updates. The on-line program is intended to bridge this gulf, she said.

Referring to Telangana’s potential in MSMEs, Chunduru said there was huge scope for growth in areas like Pochampalli, Siricilla where there are hubs of weavers and other artisans.

After formally launching the scheme, KT Rama Rao, Minister for IT & Municipal Administration, Government of Telangana said the Telangana State Finance Corporation was ready to collaborate with Indian Bank to evolve some innovative mechanism to help small businessmen in the areas of providing collateral.

He also requested Indian Bank to increase lending to priority sectors especially to weaker sections and MSMEs apart from farmers.

Also read: LIC, SBI Life, Canara Bank pick up stakes in Indian Bank under QIP

The Minister had also requested Chunduru to join the board of We-Hub which has been set up by the State government to empower women.

Imran Amin Siddiqui, Executive Director at Indian Bank said despite contributing 30 per cent to the Gross Domestic Product (GDP) they were unable to derive many benefits of schemes due to lack of awareness and Prerana initiative will address the issue.

The Prerana initiative was first launched by the bank in October last year and has already been launched by the bank in Tamilnadu, Maharashtra, among other States. Going forward, Indian Bank plans to expand the program.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Repco Home Finance Q4 net up 32%

Banking & Finance

[ad_1]

Read More/Less


Repco Home Finance (RHFL) has posted a 32 per cent growth in standalone net profit for the fourth quarter at ₹63.2 crore as against ₹47.7 crore profit in the corresponding quarter of the previous fiscal.

Total income of the lender dropped to ₹340.34 crore in Q4FY21 from ₹346.11 crore in the year-ago quarter.

Also read: All-India HPI increases by 2.7% yoy in Q4FY21

Standalone net profit for the full year grew by 3 per cent to ₹287.60 crore (₹280.35 crore) while total income during this period grew to ₹1,392.23 crore (₹1,351.1 crore).

During FY21, Repco Home Finance disbursed ₹1,840.9 crore of loans and its outstanding loan book as of March 2021 stood at ₹12,121.5 crore.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Credit guarantee scheme for facilitating MFIs loans announced, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


New Delhi, The government on Monday announced a new credit guarantee scheme that will facilitate loans to 25 lakh people through micro finance institutions (MFIs).

The announcement was made by Finance Minister Nirmala Sitharaman as part of economic relief package provided to spur investment climate in the country affected by the Covid pandemic.

As per the new scheme, guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs or MFIs for on lending up to Rs 1.25 lakh to approximately 25 lakh small borrowers.

Interest Rate on Loans from banks will be capped at MCLR plus 2 per cent.

Maximum loan tenure 3 years, 80 per cent of assistance to be used by MFI for incremental lending, interest at least 2 per cent below maximum rate prescribed by RBI.

The focus of the scheme will that lending would be for new activities and not repayment of old loans. Loans to borrowers to be in line with extant RBI guidelines such as number of lenders, borrower to be member of JLG, ceiling on household income and debt.

All borrowers (including defaulters upto 89 days) will be eligible for guarantee cover for funding provided by MLIs to MFIs/NBFC-MFIs till March 31, 2022 or till guarantees for an amount of Rs 7,500 crore are issued, whichever is earlier.

Guarantee upto 75 per cent of default amount for up to 3 years through National Credit Guarantee Trustee Company (NCGTC) which will also not charge any guarantee fee.

–IANS

sn/kr



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

Cabinet secy-led panel holds crucial meeting on bank privatisation, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


New Delhi, Jun 27 () Inching a step closer to privatisation of two public sector banks, a high-level panel headed by the cabinet secretary recently held a meeting to thrash out various regulatory and administrative issues so that the proposal could be placed with the group of ministers on disinvestment or Alternative Mechanism (AM) for approval. Pursuant to the announcement made by Finance Minister Nirmala Sitharaman in her 2021 budget speech, the NITI Aayog has suggested a couple of bank names for privatisation to the Core Group of Secretaries on Disinvestment headed by Cabinet Secretary in April, sources said.

The meeting of the high-level panel deliberated on the recommendation of the NITI Aayog on Thursday June 24, sources said, adding the panel would after tying up all loose ends will send the names of the shortlisted PSU banks to AM for consideration.

Headed by the cabinet secretary, the members of the panel include secretaries in the departments of Economic Affairs, Revenue, Expenditure, Corporate Affairs and Legal Affairs, as well as the secretary of administrative department. The panel also has the Department of Public Enterprises, Department of Investment and Public Asset Management (DIPAM) secretary as its member.

According to sources, the panel also examined issues pertaining to protection of interests of workers of banks which are likely to be privatised.

Following a clearance from AM, it will go to the Union Cabinet headed by the Prime Minister for the final nod. Changes on the regulatory side to facilitate privatisation would start after the cabinet approval.

Central Bank of India and Indian Overseas Bank are reported to be probable candidates for privatisation.

The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two PSU banks and one insurance company, during the current financial year. The amount is lower than the record budgeted Rs 2.10 lakh crore to be raised from CPSE disinvestment in the last fiscal.

In her Budget Speech on February 1, Sitharaman had announced that the government proposes to take up the privatisation of two public sector banks (PSBs) and one general insurance company in the year 2021-22.

“Other than IDBI Bank, we propose to take up the privatisation of two public sector banks and one general insurance company in the year 2021-22,” she had said.

The government last year consolidated 10 public sector banks into four and as a result, the total number of PSBs came down to 12 from 27 in March 2017. The government has merged 14 public sector banks in the last four years.

Last year in April, the government effected the biggest ever consolidation exercise in the public sector banking space when six PSU lenders were merged into four in a bid to make them globally competitive. DP CS ANZ MKJ



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , ,

Rajnish Kumar, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Vijay Mallya, former Chairman, UB Group and Kingfisher Airlines, has been claiming on Twitter that he is ready to make a one-time settlement to the lenders. But in reality, he has not made any official communication to them.

“Till the time I was the chairman, there was no communication received from Vijay Mallya about any such offer,” said, Rajnish Kumar, Former Chairman, SBI.

Mallya fled India in 2016 when the lenders and investigative agencies went heavily against him. He is now living in London. His total dues are more than Rs 7,000 crore and lenders are in the process of recovering from his assets. Recently, the PMLA court has approved the sale of his assets. Lenders are confident that there will be a significant recovery from his accounts.

“Lenders have security. Irrespective of what Vijay Mallya does, bankers have the security to recover their dues from his assets. And that security is very good and valuable. Recently, the PMLA court has approved the sale of his assets. In Mallya’s case, whatever is the narrative, whatever be his mistakes. I am sure the lender will recover better than many other stressed assets,”Kumar said.

This is the second time that Mallya has been proved wrong on his statements. Earlier too, Mallya had claimed that he had met former Finance Minister Arun Jaitley regarding an offer to settle his dues. But Jaitley had denied any such talks with him.

India has been trying hard to catch hold of Vijay Mallya who is living in London. There is already an extradition case going on and he is living on bail. After the PMLA courts approval to sell his assets, he said on Twitter, “Does nobody consider that my assets far in excess of Kingfisher Airlines borrowings have been attached by ED and the several of my settlement offers to repay 100%? Where is the cheating or fraud?”



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Merge RRBs with sponsor banks, AIBEA urges Finance Minister, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Chennai, The merger of Regional Rural Banks (RRB) with their sponsor banks would avoid business cannibalization and reduction in administrative overheads, the All India Bank Employees’ Association (AIBEA) said on Monday.

In a letter to Union Finance Minister Nirmala Sitharaman, AIBEA General Secretary C.H. Venkatachalam said instead of further reforms in the RRB sector, it would be better to merge them with their sponsor banks as this will add to the rural network of the latter and at the same time, eliminate the weaknesses that they suffer presently.

“Monitoring would be much more effective since they would become part of the bank and come under the direct control of the management of the sponsor banks. This would also obviate a lot of administrative overheads and expenses,” he said.

While the objectives of RRB are laudable, their very nature of the business makes them fragile and vulnerable, he noted.

“More often than not, these RRBs even face competition from their own sponsor banks too. In this background, there have been many efforts to restructure the RRBs to make them strong and vibrant but the results have not been that encouraging because of the intrinsic reasons and they are bound to be so,” Venkatachalam said.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

SIDBI appoints Sudatta Mandal as Deputy Managing Director, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Sudatta Mandal has been appointed as the Deputy Managing Director of Small Industries Development Bank of India’s (SIDBI). The appointment is for a period of 3 years.

Prior to this, Sudatta Mandal was the Chief General Manager of EXIM Bank. He has over 25 years of professional experience in international trade and investment finance, project finance, structured lending, SME lending, including cluster financing, and trade finance.

He is a B-Tech. in Electrical Engineering from the Indian Institute of Technology, Kanpur, and holds a Post Graduate Diploma in Management with specialisation in Finance from the Indian Institute of Management, Calcutta.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,
1 … 7 8 9 10