Reserve Bank of India – Press Releases

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Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of September 2021, are set out in Statements I and II.

On a year-on-year (y-o-y) basis, non-food bank credit1 growth accelerated to 6.8 per cent in September 2021 as compared to 5.1 per cent in September 2020.

Highlights of the sectoral deployment of bank credit are given below:

  • Credit to agriculture and allied activities registered a higher growth of 9.9 per cent in September 2021 as compared to 6.2 per cent in September 2020.

  • Credit growth to industry picked up to 2.5 per cent in September 2021 from 0.4 per cent in September 2020. Size-wise, credit to medium industries registered a robust growth of 49.0 per cent in September 2021 as compared to 17.5 per cent last year. Credit to micro and small industries accelerated to 9.7 per cent in September 2021 from a contraction of 0.1 per cent a year ago. Credit to large industries continued to contract at 1.0 per cent in September 2021 as compared to a contraction of 0.2 per cent a year ago.

  • Within industry, credit growth to ‘all engineering’, ‘chemicals & chemical products’, ‘food processing’, ‘gems & jewellery’, ‘infrastructure’, ‘mining & quarrying’, ‘petroleum coal products & nuclear fuels’, ‘rubber, plastic & their products’, ‘textiles’ and ‘wood and wood products’ accelerated in September 2021 as compared to the corresponding month of the previous year. However, credit growth to ‘beverage & tobacco’, ‘basic metal & metal products’, ‘cement & cement products’, ‘construction’, ‘glass & glassware’, ‘leather & leather products’, ‘paper and paper products’ and ‘vehicles, vehicles parts & transport equipment’ decelerated/contracted.

  • Credit growth to the services sector decelerated to 0.8 per cent in September 2021 from 9.2 per cent in September 2020, mainly due to contraction/deceleration in credit growth to NBFCs, trade and commercial real estate.

  • Personal loans registered an accelerated growth of 12.1 per cent in September 2021 as compared to 8.4 per cent a year ago, primarily due to faster credit growth in housing, vehicle loans, and loans against gold jewellery.

Ajit Prasad
Director   

Press Release: 2021-2022/1118

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Yes Bank launches co-branded card with BankBazaar.com

Banking & Finance

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Yes Bank on Friday announced the launch of co-branded credit card FinBooster in partnership with BankBazaar.com.

“Built around a unique proposition of credit fitness tracker, it aims to empower customers to not only keep a track of their credit worthiness but also improve their score basis review of factors impacting their credit score through an intuitive CreditStrong app subscription (credit fitness report), complimentary for the Cardholder for the first year,” it said in a statement.

Adhil Shetty, CEO – BankBazaar.com, said, “The most recent edition of the BankBazaar Aspiration Index revealed that while close to 90 per cent people knew what credit score was, less than 70 per cent could accurately point out the impact of their financial habits on their credit scores. This was the gap we saw among 22-45-year-old salaried professionals.”

Rajanish Prabhu, Head – Credit Cards and Merchant Acquisition, Yes Bank said, “Finbooster in partnership with BankBazaar is another step in our endeavour to enhance customer experience while strengthening our Credit Cards portfolio. Designed to promote credit health, the card empowers customers to boost their credit worthiness while continuing to earn rewards points through everyday spends across brands and merchants.”

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PB Fintech plans to set up offline physical centres to complement online channel

Banking & Finance

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IPO-bound PB Fintech, an online financial services marketplace focussed on insurance, plans to open small management offices as part of its efforts to improve its market share and make its online model even more successful, Yashish Dahiya, Chairman and CEO, has said.

“The objective will be to raise conversion rates on online customers. Our business model is not that of setting up a branch. We are not setting up branches in high footfall areas. We are not setting up retail stores. They are going to be small service offices and management offices that will handhold customers at their drawing rooms or their office canteens,” Dahiya told BusinessLine.

Strategic move

He also made it clear that this should not be seen as a strategic shift for the digital company. “We will continue to acquire customers through website and app. But these are customers that need some hand holding. So far we provided that from call centre. Now, we will have our people on the ground do it from the physical centres. If we do not do this, in five years time our premium will be lot lower than if we were to do this. From overall profitability perspective, it will be margin accretive,” he said.

Alok Bansal

 

Alok Bansal, Wholetime Director & CFO, said that having a local person would give online customer added comfort that one is talking to a local agent in their own lingo. “They would feel that I have gone to the website and I also get local support enhancing what I got online,” he noted.

In financial year 2020-21, Policybazaar, which is India’s largest digital insurance marketplace, clocked insurance premium of ₹4,700 crore (new and renewals) out of its platform.

₹5,710-cr IPO on November 1

PB Fintech, which owns Policybazaar and digital consumer credit marketplace Paisabazaar, is launching its ₹5,710-crore initial public offering (IPO) on November 1.

Meanwhile, asked as to which of the two— Policybazaar or Paisabazaar— will be the main growth driver for PB Fintech in the coming years, Dahiya said that he would not like to compare the two and added that both will have their spaces.

Scaling up

Dahiya said that company’s efforts in focussing on corporates (including SMEs), points of sales Presence and physical presence is expected to help it scale up business in the coming days.

On international expansion, he said that the company has now got a presence in Dubai and sees lot of potential to grow in UAE. Going forward, one may even look at entering other geographies including Europe and South East Asia, he added.

Dahiya also said that PB Fintech may in the coming days even look at setting up investment platform for mutual funds, but quickly noted that no specific decision has been taken by its Board on this front.

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Reserve Bank of India – Press Releases

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1. Reserve Bank of India – Liabilities and Assets*
(₹ Crore)
Item 2020 2021 Variation
Oct. 23 Oct. 15 Oct. 22 Week Year
1 2 3 4 5
4 Loans and Advances          
4.1 Central Government – – – – –
4.2 State Governments 6463 8296 4802 -3495 -1661
* Data are provisional.

2. Foreign Exchange Reserves
Item As on October 22, 2021 Variation over
Week End-March 2021 Year
₹ Cr. US$ Mn. ₹ Cr. US$ Mn. ₹ Cr. US$ Mn. ₹ Cr. US$ Mn.
1 2 3 4 5 6 7 8
1 Total Reserves 4793167 640100 -31781 -908 574214 63116 667127 79568
1.1 Foreign Currency Assets 4321443 577098 -28850 -853 397275 40405 511969 59574
1.2 Gold 287854 38441 -2535 -138 40131 4561 16529 1581
1.3 SDRs 144680 19321 -196 74 133817 17835 133732 17834
1.4 Reserve Position in the IMF 39189 5240 -200 10 2991 316 4897 580
*Difference, if any, is due to rounding off

4. Scheduled Commercial Banks – Business in India
(₹ Crore)
Item Outstanding as on Oct. 8, 2021 Variation over
Fortnight Financial year so far Year-on-year
2020-21 2021-22 2020 2021
1 2 3 4 5 6
2 Liabilities to Others            
2.1 Aggregate Deposits 15755753 156805 734455 642240 1364025 1453805
2.1a Growth (Per cent)   1.0 5.4 4.2 10.5 10.2
2.1.1 Demand 1786335 -37405 -147025 -74858 128813 316356
2.1.2 Time 13969418 194210 881480 717098 1235211 1137449
2.2 Borrowings 253399 7501 -54194 9374 -87371 -1846
2.3 Other Demand and Time Liabilities 584167 782 -83914 -72440 13120 64405
7 Bank Credit 11013458 56641 -27366 63949 554114 669963
7.1a Growth (Per cent)   0.5 –0.3 0.6 5.7 6.5
7a.1 Food Credit 62408 66 11629 1154 3103 -985
7a.2 Non-food credit 10951050 56575 -38995 62795 551011 670948

6. Money Stock: Components and Sources
(₹ Crore)
Item Outstanding as on Variation over
2021 Fortnight Financial Year so far Year-on-Year
2020-21 2021-22 2020 2021
Mar. 31 Oct. 8 Amount % Amount % Amount % Amount % Amount %
1 2 3 4 5 6 7 8 9 10 11 12
M3 18844578 19567496 171461 0.9 1006273 6.0 722918 3.8 1919671 12.1 1761260 9.9
1 Components (1.1.+1.2+1.3+1.4)                        
1.1 Currency with the Public 2751828 2830514 15582 0.6 259405 11.0 78685 2.9 478935 22.5 221360 8.5
1.2 Demand Deposits with Banks 1995120 1920877 -37359 -1.9 -146786 -8.4 -74243 –3.7 133734 9.2 329971 20.7
1.3 Time Deposits with Banks 14050278 14768367 192401 1.3 889288 7.0 718089 5.1 1296976 10.6 1205064 8.9
1.4 ‘Other’ Deposits with Reserve Bank 47351 47738 838 1.8 4365 11.3 387 0.8 10026 30.5 4865 11.3
2 Sources (2.1+2.2+2.3+2.4-2.5)                        
2.1 Net Bank Credit to Government 5850374 6124433 48310 0.8 669497 13.5 274059 4.7 724319 14.8 494574 8.8
2.1.1 Reserve Bank 1099686 1138634 20124   -66591   38949   -72585   213033  
2.1.2 Other Banks 4750689 4985798 28186 0.6 736088 18.5 235110 4.9 796904 20.4 281541 6.0
2.2 Bank Credit to Commercial Sector 11668466 11720568 54556 0.5 -33079 -0.3 52101 0.4 601750 5.8 715002 6.5
2.2.1 Reserve Bank 8709 4434 -1363   1638   -4275   7192   -10370  
2.2.2 Other Banks 11659757 11716134 55918 0.5 -34717 -0.3 56376 0.5 594558 5.7 725372 6.6

8. Liquidity Operations by RBI
(₹ Crore)
Date Liquidity Adjustment Facility MSF* Standing Liquidity Facilities Market Stabi lisation Scheme OMO (Outright) Long Term Repo Operations& Targeted Long Term Repo Operations# Special Long- Term Repo Operations for Small Finance Banks Special Reverse Repo£ Net Injection (+)/ Absorption (-) (1+3+5+ 6+9+10+ 11+12-2- 4-7-8-13)
Repo Reverse Repo* Variable Rate Repo Variable Rate Reverse Repo Sale Purchase
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Oct. 18, 2021 – 201304 – – 806 – – – – – – – – -200498
Oct. 19, 2021 – 44534 – – 3928 – – – – – – – – -40606
Oct. 20, 2021 – 207337 – 200008 1678 – – – – – – – – -405667
Oct. 21, 2021 – 169520 – – 370 2500 – 225 315 – – – – -166560
Oct. 22, 2021 – 140873 – 418395 461 –2500 – 90 – – – – 8365 -569762
Oct. 23, 2021 – 14916 – – 476 – – – – – – – – -14440
Oct. 24, 2021 – 3560 – – 216 – – – – – – – – -3344
* Includes additional Reverse Repo and additional MSF operations (for the period December 16, 2019 to February 13, 2020).
# Includes Targeted Long Term Repo Operations (TLTRO) and Targeted Long Term Repo Operations 2.0 (TLTRO 2.0) and On Tap Targeted Long Term Repo Operations. Negative (-) sign indicates repayments done by Banks.
& Negative (-) sign indicates repayments done by Banks.
£ As per Press Release No. 2021-2022/177 dated May 07, 2021. From June 18, 2021, the data also includes the amount absorbed as per the Press Release No. 2021-2022/323 dated June 04, 2021.

The above information can be accessed on Internet at https://wss.rbi.org.in/

The concepts and methodologies for WSS are available in Handbook on WSS (https://rbi.org.in/scripts/PublicationsView.aspx?id=15762).

Time series data are available at https://dbie.rbi.org.in

Ajit Prasad
Director   

Press Release: 2021-2022/1117

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Reserve Bank of India – Press Releases

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Reserve Bank of India announces the auction of Government of India Treasury Bills as per the following details:

Sr. No Treasury Bill Notified Amount
(in ₹ crore) 		Auction Date Settlement Date
1 91 Days 10,000 November 02, 2021
(Tuesday)		 November 03, 2021
(Wednesday)
2 182 Days 3,000
3 364 Days 7,000
  Total 20,000    

The sale will be subject to the terms and conditions specified in the General Notification F.No.4(2)-W&M/2018 dated March 27, 2018 along with the Amendment Notification No.F.4(2)-W&M/2018 dated April 05, 2018, issued by Government of India, as amended from time to time. State Governments, eligible Provident Funds in India, designated Foreign Central Banks and any person or institution specified by the Bank in this regard, can participate on non-competitive basis, the allocation for which will be outside the notified amount. Individuals can also participate on non-competitive basis as retail investors. For retail investors, the allocation will be restricted to a maximum of 5 percent of the notified amount.

The auction will be Price based using multiple price method. Bids for the auction should be submitted in electronic format on the Reserve Bank of India’s Core Banking Solution (E-Kuber) system on Tuesday, November 02, 2021, during the below given timings:

Category Timing
Competitive bids 10:30 am – 11:30 am
Non-Competitive bids 10:30 am – 11:00 am

Results will be announced on the day of the auction.

Payment by successful bidders to be made on Wednesday, November 03, 2021.

Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22632527, 022-22701299) in the prescribed form obtainable from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends.

In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595666, 022-27595415, 022-27523516). For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Ajit Prasad
Director   

Press Release: 2021-2022/1116

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STFC reports 13% y-o-y increase in Q2 standalone net

Banking & Finance

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Shriram Transport Finance Company (STFC) reported a 13 per cent year-on-year increase in second quarter standalone net profit at ₹771.24 crores against ₹684.56 crores in the year-ago period.

The Board declared an interim dividend of ₹8 (80 per cent) per share of face value of ₹10 each fully paid up for FY22.

Net interest income was up about 8 per cent y-o-y at ₹2,193 crore (against ₹2,025 crore).

Also see: Govt approves rules for automated testing stations for vehicles

Assets under management of STFC, a leading player in the pre-owned commercial vehicle financing segment, increased by about 7 per cent to ₹1,21,647 crore by September-end, mainly on the back of growth in used vehicles financing portfolio.

However, there was a de-growth in the new vehicles, business loans and working capital loans portfolio.

Also see: Is the economic recovery V, K or W shaped?

Gross stage 3 (credit impaired) assets position improved to 7.82 per cent of gross advances by September-end against 8.18 per cent at June-end 2021. However, gross stage 3 assets in the reporting quarter were higher vis-a-vis 6.50 per cent a year ago.

Net stage 3 assets position too improved to 4.18 per cent of net advances by the end of Q2FY22 against 4.74 per cent in the previous quarter but up from 3.69 per cent a year ago.

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Embassy REIT Q2 net operating income sees 30% rise

Banking & Finance

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Embassy Office Parks Real Estate Investment Trust (REIT), India’s first listed REIT which claims to be the largest office REIT in Asia by area, reported results today for the quarter and said that its net operating income rose by 30 per cent to ₹624 crore.

In regulatory filings to the exchanges, Embassy REIT said, of its net income it would distribute ₹537 crores or ₹5.66 per unit for Q2FY22t. The company also said that it had raised ₹4,600 crore debt at 6.5 per cent.

Investor base triples

Michael Holland, Chief Executive Officer of Embassy REIT, said in a release, “We are delighted to announce yet another strong quarter of continued robust business performance. We delivered our strongest leasing activity since the start of the pandemic; we successfully completed a significant ₹4,600 crore debt raise at 6.5 per cent interest rate. We have reconfirmed our full-year guidance as we see multiple tailwinds for our business — India’s stabilizing Covid situation; a reviving office leasing market, especially in our core Bangalore market; and occupiers’ business expansion driven by global tech mega-trends. These positive trends are clear to our expanding investor base which has tripled in the last twelve months.”

Embassy REIT said that it had achieved stable portfolio occupancy of 89 per cent with 15 per cent rent increases on 1.4 million square feet (msf) across 22 leases. It said that construction was on in full swing on 5.7 msf projects.

Also see: Embassy REIT raises ₹4,600 crore fresh debt to repay existing borrowings

The ₹4,600 crore debt raised at 6.5 per cent was to refinance the existing zero-coupon bond, delivering significant interest savings. The company also said that it had collected over 99 per cent of office rents on the 32.3 msf operating portfolio

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Opening of Current Accounts by Banks – Need for Discipline

Notifications

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RBI/2021-22/116
DOR.CRE.REC.63/21.04.048/2021-22

October 29, 2021

All Scheduled Commercial Banks
All Payments Banks

Madam/Sir,

Opening of Current Accounts by Banks – Need for Discipline

Please refer to our circular DOR.No.BP.BC/7/21.04.048/2020-21 dated August 6, 2020 on the captioned subject and associated circulars thereon1.

2. On a review and taking into account feedback received from Indian Banks’ Association (IBA) and other stakeholders, it has been decided that banks may open current accounts for borrowers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system as per the provisions below:

(i) For borrowers, where the exposure of the banking system is less than ₹5 crore, there is no restriction on opening of current accounts or on provision of CC/OD facility by banks, subject to obtaining an undertaking from such borrowers that they shall inform the bank(s), as and when the credit facilities availed by them from the banking system reaches ₹5 crore or more.

(ii) In respect of borrowers where exposure of the banking system is ₹5 crore or more, such borrower can maintain current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10 per cent of the exposure of the banking system to that borrower.

Further, other lending banks may open only collection accounts subject to the condition that funds deposited in such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD account maintained with the above-mentioned bank maintaining current accounts for the borrower. In case none of the lenders has at least 10% exposure of the banking system to the borrower, the bank having the highest exposure may open current accounts. Non-lending banks are not permitted to open current accounts.

3. It is clarified that borrowers not availing CC/OD facility from the banking system shall continue to maintain current accounts as per para 1(v) of the above mentioned circular dated August 6, 2020, as hitherto.

4. Further, banks are permitted to open/ maintain the following accounts, without any restrictions placed in terms of the above-mentioned circular dated August 6, 2020, subject to meeting the conditions specified as at para 2 of DOR.No.BP.BC.30/21.04.048/2020-21 dated December 14, 2020:

    1. Inter-bank accounts

    2. Accounts of All India Financial Institutions (AIFIs), viz., EXIM Bank, NABARD, NHB, and SIDBI

    3. Accounts opened under specific instructions of Central Government and State Governments

    4. Accounts attached by orders of Central or State governments/regulatory body/Courts/investigating agencies etc. wherein the customer cannot undertake any discretionary debits

5. With reference to FAQ 18 of the circular dated December 14, 2020, in line with FAQ 9, banks maintaining collection accounts are permitted to debit fee/charges from such accounts before transferring the funds to the escrow account/CC/OD account of the borrower.

6. With reference to para 3 of the circular dated December 14, 2020 read with FAQ 17, it is clarified that banks shall monitor all accounts regularly, at least on a half-yearly basis, specifically with respect to the exposure of the banking system to the borrower, and the bank’s share in that exposure, to ensure compliance with these instructions. If there is a change in exposure of banks or aggregate exposure of the banking system to the borrower which warrants implementation of new banking arrangements, such changes shall be implemented within a period of three months from the date of such monitoring.

7. Banks may implement the necessary changes within one month from the date of this circular. The compliance position thereon will be reviewed thereafter.

8. A consolidated self-contained circular on the subject will be issued soon.

9. All other instructions contained in the circulars ibid remain unchanged.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager

1 DOR.No.BP.BC.27/21.04.048/2020-21 dated November 2, 2020, DOR.No.BP.BC.30/21.04.048/2020-21 dated December 14, 2020 and DOR.CRE.REC.35/21.04.048/2021-22 dated August 04, 2021

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Reserve Bank of India – Press Releases

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    GOI FRB 2028 6.10% GS 2031 6.76% GS 2061
I. Notified Amount ₹4,000 cr ₹13,000 cr ₹7,000 cr
II. Cut off Price / Implicit Yield at cut-off 99.65/4.3776% 97.94/6.3866% 95.89/7.0698%
III. Amount accepted in the auction ₹4,000 cr ₹13,000 cr ₹7,000 cr
IV. Devolvement on Primary Dealers Nil Nil Nil

Ajit Prasad
Director   

Press Release: 2021-2022/1115

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