Finance
Credit consciousness among non-metro borrows picks up pace, says report
Borrowers in non-metro regions, including rural, semi-urban, and urban areas, are becoming more credit-conscious than their metro counterparts. Credit monitoring among these areas has surged by 57% in 2023-24, according to TransUnion CIBIL. Young borrowers, particularly Gen Z and Millennials, are leading this trend. States like Kerala, Tamil Nadu, and West Bengal show significant growth.
Protection against suits can't continue forever, NCLAT tells IL&FS
The National Company Law Appellate Tribunal has asked IL&FS to justify extending its protection from legal proceedings, which currently expires on October 15. NCLAT dismissed claims from Sadbhav Engineering and GKC Projects but demanded reasons for continued protection. If lifted, the order could impact 70 unresolved IL&FS entities under the IBC.
RBI plans to implement uniform licensing for online and offline payment aggregators
The Reserve Bank of India will streamline its licensing process for payment aggregators by merging requirements for online and offline entities. This unified license aims to facilitate seamless operations across both domains. The RBI stresses the need for secure transactions and plans to integrate Aadhaar-enabled Payment Systems with POS machines to boost financial inclusion in rural areas.
Shriram Capital appoints Subhasri as MD and CEO
Shriram Capital has appointed Subhasri as its new managing director and CEO. Previously serving as joint managing director, she will now lead the company from September 1. Subhasri, who joined Shriram Group in 1991, has played a key role in its growth and expansion, demonstrating dedication and cross-functional expertise, according to DV Ravi, executive vice chairman of Shriram Capital.
Motilal Oswal PE buys 25% stake in Lal Sweets
Lal Sweets follows an omni-channel strategy, retailing its products across 4,000 modern trade outlets, 7,000 general trade outlets, quick-commerce platforms, e-commerce platforms, and its own website, according to the company. It also operates a travel-focused retail business with 40 outlets at various airports in the country.
Shriram Finance plans to raise up to $1.5 bn from overseas, CEO says
Shriram Finance, an Indian non-banking lender, plans to raise $1.25 billion to $1.5 billion in the current fiscal year from international markets to diversify its borrowings. The funds will be raised through a mix of loans and bonds. This move comes after India's central bank required lenders to hold more capital for loans to NBFCs, increasing the cost of raising funds.
Yes Bank ties up with Newtap Finance to Offer Financing Solutions
Yes Bank has entered into a co-lending partnership with Newtap Finance to offer personalized financing solutions on CRED. Dreamplug Technologies Private Limited (DTPL), the operator of CRED, will act as the Lending Service Provider (LSP) for Yes Bank and Newtap Finance in this partnership.
Spurt in travel spurs credit card spends overseas
Overseas credit card spending has surged significantly, outpacing increases in prepaid payment instruments (PPIs) and debit cards over the past two years. This growth is attributed to a rebound in travel post-COVID-19 and attractive rewards offered by credit card issuers, despite higher taxes on international credit card transactions under the Liberalised Remittance Scheme.
View: Digital payments are transforming India’s economy
It is truly remarkable to see the rapid pace of change over the past decade making India the world’s fifth largest economy. India’s concerted push towards a “less-cash” economy is bringing half a billion Indians from underserved communities into the country's economy; a key factor leading the country to becoming one of the world’s fastest growing economies. As Vice Chair of Visa, I strongly believe that advancing financial inclusion is the key to building sustained economic growth and India is creating a model for the future of payments globally.
Domestic banks and NBFCs increase exposure to Adani Group to 36% of total debt
Domestic banks and non-banking financial companies raised their exposure to the Adani Group to 36% of its total debt by March 2024, lending ₹88,100 crore. The group’s debt increased due to capital expenditures in airports and green energy. However, a 45% rise in operating profit helped reduce its net debt-to-operating profit ratio to its lowest in six years at 2.19 times, down from 3.27 times a year earlier.
Must Watch
Jio Financial Services gets nod to raise foreign investment limit to 49%
Jio Financial Services Ltd has been granted approval to raise its foreign investment limit to 49%. Foreign investors currently hold 17.55% of the company's shares. The company's net profit fell 6% in the first quarter ending June. Jio Financial introduced new services such as mutual fund loans and auto insurance in July.
Lenders to Reliance Cap raise concerns over Rs 7,300 cr debt term sheet offered by IIHL
Lenders to debt-laden Reliance Capital expressed concerns over the term sheet provided by IIHL for Rs 7,300 crore debt mobilisation, citing numerous conditions. The CoC sought further documents and moved to forfeit IIHL's Rs 2,750 crore escrow amount if defaults occurred. Interest on the debt from August 8 was also demanded.
Anil Ambani's Reliance Capital: A timeline of how a top financial co ended up bankrupt
Anil Ambani faced a five-year ban from SEBI and a Rs 25 crore fine over fund diversion at Reliance Home Finance. Once flourishing in 2007, his ventures suffered severe setbacks after the 2008 financial crisis, ending in Reliance Capital's bankruptcy declaration in 2021.
Reliance Capital lenders move NCLAT over IIHL's payment delay
Secured lenders of Reliance Capital sought the National Company Law Appellate Tribunal's intervention to include interest on delayed payments by IndusInd International Holdings (IIHL). They also sought permission to forfeit ₹2,750 crore in case of default. This move followed a July NCLT order granting IIHL time extension for their resolution plan's implementation.
Central bank digital currency won’t serve any special purpose, says SS Mundra
SS Mundra, former deputy governor of the RBI, doubted the central bank digital currency's effectiveness. He highlighted UPI's widespread usage and questioned the necessity of CBDC. Mundra also discussed the challenges of internationalizing the rupee without full convertibility, a step policymakers are wary of taking. He urged banks to collaborate with fintech firms to enhance their digital capabilities.
Global asset management firm BlackRock leases office space in Mumbai’s Worli
BlackRock Inc. signed a five-year lease for 42,700 sq ft office space in Mumbai’s Worli area. The lease includes rent escalations and a 36-month lock-in period. This move mirrors the robust demand in India's office sector, boosted by improved infrastructure. BlackRock, present in India since 2008, seeks to leverage the nation's growing financial markets.
