Tag: loans

Lenders get set for festive season; offer home, vehicle, gold loans at attractive rates, BFSI News, ET BFSI

Banking & Finance

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Lenders in the BFSI space are gearing up for the festive season, offering reduced interest rates on home and vehicle loans, and other discounts to customers.

Punjab National Bank, State Bank of India and Kotak Mahindra Bank are among the banks providing festive offers, while Mahindra Finance is among the non-bank lenders offering discounts on its loan products.

Also read: Ahead of festive season, banks slash interest rate on home loans. Get the details here

Here are the latest updates, so far, this week:

Mahindra Finance
Mahindra Finance on Wednesday launched festive offers on its vehicle loans for two months, providing offers and discounts to customers at competitive rates.

‘Shubh Utsav’ has been launched with immediate effect, and will continue till the end of November. It has special finance schemes, specifically for customers who plan to avail vehicle loans during these two months.

The offers can be availed across India. Below are the offers:
>SUV Loans (Mahindra brand) at interest rates starting 7.35%

>Up to 100% funding

>Loan tenure up to 7 years

>Buy now and pay after 60 days

>50% waiver on processing fees

>Pre-owned car loans at interest rates starting 12%

>Loan on tractor Implements at zero processing fee

>Quarterly and half yearly EMI for select customers for Car and Tractor loans

Punjab National Bank

PNB on Wednesday cut its gold loan rates by 145 basis points, and is now offering loans against sovereign gold bond at 7.20% and against gold jewellery at 7.30%.

The bank is also offering a full waiver of service charges and processing fee on the loans against gold jewellery and sovereign gold bond.

Earlier, the bank, as part of its festive offers, had announced a cut in home loan rate, which now starts from 6.60%, car loan rate, starting from 7.15%, and personal loan rate, from 8.95%.

ICICI Bank

ICICI Bank on Tuesday announced the launch of ‘Home Utsav’, a virtual property exhibition that digitally showcases real estate projects across cities. The exhibition will offer convenience to prospective home buyers as they can select their home by browsing through projects, approved by the bank, and avail benefits.

The offer is from October 7,2021, to December 31, 2021.

Attractive interest rate on home loans, special processing fees and digital sanction of loans and exclusive offers from developers are among the benefits that are being offered to the customers.

Furthermore, anyone, including those who are not customers of ICICI Bank, can avail of these benefits on buying a property through the exhibition, the bank said. Customers of ICICI Bank can further avail for the bank’s pre-approved home loan offers.



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BoM reduces repo-linked lending rate by 10 basis points to 6.80%

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Bank of Maharashtra (BoM) has reduced its Repo Linked Lending Rate (RLLR) by 10 basis points from 6.90 per cent to 6.80 per cent with effect from October 11.

Customers seeking home loan, car loan, education loan, personal loan and MSME loans can avail themselves of this benefit, the Pune-headquartered public sector bank said in a statement.

With the downward revision in RLLR, interest rates on retail loans now start at 6.80 per cent for home loan, 7.05 per cent for car loan and 7 per cent for gold loan, it added.

Earlier, ahead of the festive season, the bank had waived processing fee on the aforementioned retail loans.

AS Rajeev, MD & CEO, BoM, said the reduction in RLLR along with zero processing charges will benefit customers during the festival season.

The bank had reduced its marginal cost of funds based lending (MCLR) by up to 10 basis points (bps) with effect from October 8.

MCLR in four tenors has been reduced by 10 basis points to 6.70 per cent for overnight; 6.80 per cent for one month; 7.10 per cent for three months; and 7.15 per cent for six months.

One year MCLR has been reduced by 5 bps to 7.25 per cent.

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Bank of Maharashtra cuts down lending rate by 10 bps, BFSI News, ET BFSI

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Public Sector Lender, Bank of Maharashtra on Monday announced that it has reduced it’s Repo Linked Lending Rate (RLLR) from 6.90% to 6.80% with effect from 11 October, 2021. The 10 basis point reduction will make housing, car, education, MSMe and other loans cheaper.

“By reduction in RLLR our customers will be immensely benefited with zero processing charges in home loan, car loan and gold loan segments. This is going to add fillip to our customer satisfaction and bring cheers during the festive seasons,” said A S Rajeev , Managing Director, Bank of Maharashtra.

Additionally, the bank has also reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points. MCLR for overnight has been reduced to 6.70%, 1 month- 6.80%, 3 months- 7.10% and 6 months tenure to 7.15%. One year MCLR has been reduced by 5 bps to 7.25%.

Ahead of the festive season, the bank had earlier announced a processing fee waiver on home, car and gold loans. Post the new development, the home loan rate have been reduced to 6.8%, car loans to 7.05% and gold loans to 7%.



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Bank, NBFCs report spurt in Q2 advances as lending recovery picks up, BFSI News, ET BFSI

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Most banks and non-banking finance companies reported a jump in disbursal of advances in the quarter ended September in a sign that credit uptake is rising.

HDFC Bank saw its advances book grow by around 15.4% year on year at the end of the September quarter, proforma numbers released by the private sector lender showed. Its total loans aggregated to Rs 11.98 lakh crore at the end of September, up 4.4% sequentially. Its total loans were at Rs 10.38 lakh crore at the end of September 2020.

As per the bank’s internal business classification, retail loans during the September quarter grew by around 13% year on year and 5.5% over June quarter. Commercial and rural banking loans grew by around 27.5% y-o-y while other wholesale loans grew by around 6%.

Mortgage lender HDFC assigned loans amounting to Rs 7,132 crore at the end of the September quarter versus Rs 3,026 crore a year earlier. It sold loans

worth Rs 27,199 crore in the preceding 12 months versus Rs 14,138 crore in the previous year, regulatory filings show.

Private sector lender

IndusInd Bank

IndusInd Bank reported better-than-expected credit growth of 10% with total loans at Rs 2.2 lakh crore at the end of the September quarter, preliminary numbers filed with stock exchanges showed.

IDFC First Bank posted 9.75% growth in advances at Rs 1,17,243 crore for the second quarter ended September.

Private lender Yes Bank posted a 3.6% rise in its advances to Rs 1.72 lakh crore, though retail disbursements grew at a faster rate and grew by 126.6% over last

year to Rs 8531 crore at the end of the September quarter as against Rs 3764 crore a year ago.

NBFCs

Leading non-bank lender Bajaj Finance reported it had booked 6.3 million new loans at the end of the September quarter versus 3.6 million a year ago. It’s

assets under management (AUM) stood at Rs 1.66 lakh crore for the quarter under review as against Rs 1.37 lakh crore a year earlier.

Non-bank lender Mahindra & Mahindra Financial Services posted a 60% year-on-year growth in disbursements at Rs 6,450 crore at the end of the September

quarter. With further improvement in mobility during September, the collection efficiency for the NBFC was reported at 100% for September 2021.

Subject to improvement in auto supply chain, the company is hopeful of a good Q3 FY22 ahead, supported by festival season and harvest cash flow.” M&M Finance said.

AU Small Finance Bank

AU Small Finance Bank Ltd’s total deposits were up 45% on year at Rs 39,030 crore as of September 30, according to provisional data from the bank. Gross advances rose 32% on year to Rs 36,405 crore. Of the total gross advances, the small finance bank restructured 800 accounts worth Rs 800 crore in July-September. Disbursements rose 57% on year and 171% on quarter to Rs 5135 crore. It also made disbursements worth 530 mln rupees under the Reserve Bank of India’s targeted long-term repo operations.

RBL Bank’s total deposits rose 17% on year as of Sep 30, according to provisional data from the bank. Deposits stood at 755.9 bln rupees, up 1% on quarter. The bank’s gross advances rose 1% on year to Rs 58,046 crore as on September 30. Of the gross advances, 55% comprised retail advances while the remaining 45% is in the wholesale category.



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Banks, NBFCs report jump in advances in September quarter, BFSI News, ET BFSI

Banking & Finance

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In a sign that bank credit growth may be on an uptrend, most bank and non-bank lenders reported a jump in disbursal of advances in the quarter ended September.

HDFC Bank saw its advances book grow by around 15.4% year on year at the end of the September quarter, proforma numbers released by the private sector lender showed. Its total loans aggregated to Rs 11.98 lakh crore at the end of September, up 4.4% sequentially. It’s total loans were at Rs 10.38 lakh crore at the end of September 2020.

As per the bank’s internal business classification, retail loans during the September quarter grew by around 13% year on year and 5.5% over June quarter. Commercial and rural banking loans grew by around 27.5% y-o-y while other wholesale loans grew by around 6%.

HDFC Bank has “resumed its retail growth journey” as the economy recovered from the second wave of Covid-19, said Gautam Chhuggani, director – financial at investment management firm Bernstein Research.

“We expect loan mix normalisation to be the norm in the coming quarters, with a focus on improving margins and ongoing tech transformation,” he said and noted that the bank has already reported a healthy bounce-back on new credit card issuances after the Reserve Bank of India in August lifted a ban imposed in December last year.

Mortgage lender HDFC assigned loans amounting to Rs 7,132 crore at the end of the September quarter versus Rs 3,026 crore a year earlier. It sold loans worth Rs 27,199 crore in the preceding 12 months versus Rs 14,138 crore in the previous year, regulatory filings show.

Private sector lender IndusInd Bank reported better-than-expected credit growth of 10% with total loans at Rs 2.2 lakh crore at the end of the September quarter, preliminary numbers filed with stock exchanges showed.

“The credit growth indicates underlying strong credit re-acceleration in the retail book,” said Anand Dama, senior research analyst at Emkay Financial Services. “The bank has been growing its corporate book since the June quarter and we believe that the bank is likely to have seen healthy momentum in the corporate book in September quarter as well.”

IDFC First Bank posted 9.75% growth in advances at Rs 1,17,243 crore for the second quarter ended September.

Leading non-bank lender Bajaj Finance reported it had booked 6.3 million new loans at the end of the September quarter versus 3.6 million a year ago. It’s assets under management (AUM) stood at Rs 1.66 lakh crore for the quarter under review as against Rs 1.37 lakh crore a year earlier.

Non-bank lender Mahindra & Mahindra Financial Services posted a 60% year-on-year growth in disbursements at Rs 6,450 crore at the end of the September quarter. With further improvement in mobility during September, the collection efficiency for the NBFC was reported at 100% for September 2021.

“Subject to improvement in auto supply chain, the company is hopeful of a good Q3 FY22 ahead, supported by festival season and harvest cash flow.” M&M Finance said in a statement.

Private lender Yes Bank posted a 3.6% rise in its advances to Rs 1.72 lakh crore, though retail disbursements grew at a faster rate and grew by 126.6% over last year to Rs 8531 crore at the end of the September quarter as against Rs 3764 crore a year ago.



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Delhi govt asks banks to integrate their vehicle loan data with VAHAN portal, BFSI News, ET BFSI

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Delhiites who have taken loans on their vehicles need not visit a bank or the transport department‘s office after October as the city government has asked the banks, financial institutions and NBFCs to integrate their vehicle loan data with the VAHAN portal of the Ministry of Road Transport and Highways. Any applicant who has taken a vehicle loan from any financial institution need not visit the bank or physically submit any document, according to a statement issued by the transport department on Monday.

“No physical documents needed for hypothecation of vehicles in Delhi after October 31,” it said.

Hypothecation is the process whereby the ownership of a vehicle taken on loan and held as collateral by a bank or a lending agency is restored to its buyer.

“We had, in the last month set a strict deadline to take all banks on board for integrating their data with VAHAN to allow termination on hypothecation services and I am happy to see that the process has picked pace and is nearly complete,” Delhi Transport Minister Kailash Gahlot was quoted as saying in the statement.

With this circular, the “no-objection certificate” (NOC) for hypothecation termination from banks and other financial institutions will be received only in the digital format at the VAHAN platform of the National Informatics Centre (NIC), the statement said.

Hypothecation services, including addition, continuation and termination on vehicle loans, are one of the most availed services of the transport department under its “Faceless Services” initiative launched in August.

Private banks HDFC and ICICI together account for 70-80 per cent of all the vehicle loans in Delhi and have already integrated their loan-related data with the VAHAN portal, according to the statement.

Delhiites need not visit a bank for the NOC as they can directly apply for hypothecation removal on the transport department’s website under “Faceless Services”.

Earlier, after the foreclosure of a loan, an applicant had to apply for termination of hypothecation and submit Form 35 and an NOC from the bank within 90 days.

The circular says from November 1, the banks or financial institutions that fail to integrate the data with the VAHAN portal would not be allowed to enter their data of hypothecation into the transport department’s database. PTI VIT RC



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YES Bank advances edge up 3.6 per cent, deposits rise 30 per cent

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Private sector lender YES Bank posted a 3.6 per cent increase in its loans and advances as on September 30, 2021, to Rs 1.72 lakh crore from Rs 1.66 lakh crore a year ago.

Of this, gross retail disbursements expanded at a much faster pace and jumped up by 126.6 per cent to Rs 8,531 crore as on September 30, 2021, compared to Rs 3,764 crore a year ago.

“The above information is provisional and being released ahead of the official announcement of the financial results for the quarter ended September 30, 2021, which is subject to approval by the audit committee of the board, the board of directors and a limited review by the statutory auditors of the bank,” YES Bank said in a stock exchange filing on Monday.

 

The bank’s deposits also grew by 30.1 per cent to Rs 1.76 lakh crore at the end of the second quarter this fiscal, as against Rs 1.35 lakh crore a year ago. CASA deposits increased by 54.3 per cent on an annual basis to Rs 52,029 crore as on September 30, 2021.

The bank’s credit-to-deposit ratio was 97.9 per cent as on September 30, 2021, as against 122.9 per cent a year ago. The liquidity coverage ratio was 113.1 per cent at the end of the second quarter this fiscal, versus 107.3 per cent a year ago.

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Federal Bank records 10% loan growth in Q2, BFSI News, ET BFSI

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Private sector lender Federal Bank on Sunday said it has posted a 10 per cent growth in advances at Rs 1,37,309 crore for the second quarter ended September 30. Total advances stood at Rs 1,25,209 crore at the end of the second quarter of the last financial year, Federal Bank said in a regulatory filing.

The bank’s deposits also rose by 10 per cent (Y-o-Y) to Rs 1,71,995 crore in the quarter from Rs 1,56,747 crore in the same period a year ago, it said.

Federal Bank’s low-cost deposits–current account and saving deposits(CASA)-were up by 18 per cent to Rs 62,191 crore.

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HDFC Bank to double its rural reach to 2 lakh villages in two years, BFSI News, ET BFSI

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MUMBAI: HDFC Bank aims to expand its reach to two lakh villages in the next 18-24 months. The bank plans this expansion through a combination of branch network, business correspondents, business facilitators, CSC partners, virtual relationship management and digital outreach platforms. This will increase the Bank’s rural outreach to about a third of the country’s villages.

HDFC Bank currently offers its products and services to MSMEs in over 550 districts. Its rural banking services extend to 100,000 Indian villages. It aims to double this to 2,00,000 villages. As a part of this plan it plans to hire 2,500 people more in the next 6 months.

Rahul Shukla, Group Head – Commercial and Rural Banking, HDFC Bank, said in a statement, “India’s rural and semi-urban markets are under-served in credit extension. They present sustainable long-term growth opportunities for the Indian banking system. HDFC Bank remains committed to extend credit, responsibly, in service of the nation. Going forward we dream of making ourselves accessible in every pin code.”

While offering its services the bank will offer its traditional products and services as well as new ones. It already offers customised offerings such as pre- and post-harvest crop loans, two-wheeler and auto loans, loans against gold jewellery, and other curated loan products in unbanked and under-banked geographies.



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Short of lending targets, banks seek priority sector tag for retail, infrastructure, BFSI News, ET BFSI

Banking & Finance

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Banks have reached out to the government seeking priority sector tag for retail trade and infrastructure.

This comes as most lenders are struggling to meet their priority sector targets with premium on lending certificates rising by almost 200 basis points in the last one year. At present only, regional rural banks or RRBs are suppliers of priority sector lending credit.

“We have had informal discussions with the Reserve Bank of India, and have made representation to the government as well,” said a bank executive, aware of the developments, adding that there was a need to broaden the priority sector.

At present lending towards eight sectors including agriculture, micro and small medium enterprises, export credit, housing, education, renewable energy and social infrastructure is considered eligible for priority sector loans. Commercial lenders have to mandatorily deploy 40% of their adjusted net bank credit (ANBC) towards these sectors, of which 18% is allocated towards agriculture.

The latest data from RBI indicates that overall priority sector lending for scheduled commercial banks stood at 40.54% in 2020-21 (as at the end of December 2020) even though there was a marginal shortfall for private sector and foreign banks.

“There are various subcategories within this structure and most banks are unable to meet these requirements and hence there is a need to identify new potential sectors,” the above quoted executive said adding that most big lenders resort to buying priority sector lending certificates (PSLCs) to meet their regulatory requirements. A bank running short of meeting targets can purchase priority sector lending certificates from a lender having surplus for a fee.

“Today, only regional rural banks (RRBs) are suppliers of PSLC and most sponsoring banks buy it from their RRBs,” he said, adding that non-banking finance companies or NBFCs also have underwriting limitations.

The total trading volume of PSLCs recorded a growth of 25.9% and stood at Rs 5.89 lakh crore in 2020-21 as compared with 43.1% growth a year ago.



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