Media reports indicate that several home loan borrowers have moved their loans to banks that are offering lower rates (especially SBI) owing to cost advantage. The movement of existing home loan borrowers from one bank to another is happening at a time when the overall growth for the industry is flat, some analysts opine. A sha
Tag: credit
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Court allows SKS Microfin to resume business in AP
In an interim order, the Supreme Court allowed SKS Microfinance to resume microlending operations in Andhra Pradesh without securing a no-objection certificate from the state government. MFI operations in the state, by and large, came to a standstill after the state government introduced the Andhra Pradesh Micro Finance Institution (Regulation of Money Lending) Ordinance 2010
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SBI gets Rs 30 bn capital infusion from govt
In a move that raised the shareholding of government in State Bank of India (SBI) to 62.31 per cent from 61.58 per cent, the centre infused Rs 3,004 crore capital into the bank. The countryĂâs largest lender, in return, alloted 12.9 million preferential equity shares at Rs 2,312.78 a share to the government
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World Bank agrees to lend Rs 11.6 bn for transport project
The Rs 2,403 crore second phase of the Kerala State Transport Project (KSTP) received partial funding from the World Bank. The multilateral lending agency signed a loan agreement with the Department of Economic Affairs to make available Rs 1,166 crore for the project. Under the second phase, the Kerala government would develop 367 km of state highways spread over eight
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RBI wants banks to mitigate risks on infra loans
In a communication to banks, the the Reserve Bank of India (RBI) asked lenders to take steps to mitigate loans given for infrastructure projects under the public-private partnership (PPP) model. The RBI asked banks make provisions such as pre-determined increase in user charges for infrastructure projects in order to ensure sufficient risk mitigation. There has t
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Bank credit rises faster than deposit
Bank credit rose Rs 103,318 crore during January 1 to February 22, more than deposit growth of Rs 88,062 crore, data from Reserve Bank of India (RBI) shows. The incremental credit-deposit ratio is at 117 per cent, clearly pointing to the pressure in the banking system to garner resources. During the fortnight ending February 22, bank credit grew Rs 26,200 crore, while deposits declined Rs 9,200 crore
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Govt’s Rs 1.9 trillion debt recast scheme fails to enthuse SEBs
Reports indicate that the Rs 1.9 lakh crore debt restructuring package announced by the central government for state electricity boards (SEBs) has not received much response. It is learnt that no major state has yet entered into a memorandum of undertaking (MoU) with the centre for debt recast. states such as Rajasthan are negotiating with ban
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Bad loans of banks rises
According to the Economic Survey 2012-13, overall non-performing assets (NPAs) of the banking sector rose from 2.36 per cent of total credit in March 2011 to 3.57 per cent in September 2012. Slowdown and the high leverage levels have caused loans to a few industry and infrastructure sectors turning NPAs, the survey notes. Sectors particularly under
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Care expects banks to recast Rs 577 bn worth loan
According to a report by ratings agency Care, banks in the country would restructure new loan worth Rs 57,782 crore and this would raise the total recast loan book to Rs 312,022 crore next fiscal (2013-14). The report expects banks to carry out most of the restructuring in pipeline during the fourth quarter of this fiscal and through next fiscal if the draft RBI guidelines on re
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Care expects banks to recast Rs 577 bn worth loan
According to a report by ratings agency Care, banks in the country would restructure new loan worth Rs 57,782 crore and this would raise the total recast loan book to Rs 312,022 crore next fiscal (2013-14). The report expects banks to carry out most of the restructuring in pipeline during the fourth quarter of this fiscal and through next fiscal if the draft RBI guidelines on re