ICRA’s Post

As per the recent #LatticeAnalysis with #Pulse product, the outward remittances from India witnessed an uptick of approximately 28%, M-o-M basis in Dec’ 2023. December recorded outward remittances worth US$ 2.4B compared to US$ 1.9B in November. Read the full story for more in-depth information into the outward #remittances: https://lnkd.in/gA3zWjut Story credit: Anushka Sengupta | ETBFSI For more such insights into the #BFSI sector, follow 1Lattice. #EnablingBetterDecisions #banking #finance #fintech #investments Amar Choudhary Hitesh Gossain Abhilasha Jaju Harsh Salgaonkar Praneet Singhal Roma Dixit

In a recent article on ETBFSI, Amit Shankar, our National Head of Enterprise Credit, shares how Non-Banking Financial Companies (NBFCs) are stepping up to address the term financing needs of Mid-Market Enterprises (MMEs) in India. NBFCs offer these enterprises the flexibility they are looking for, empowering them to invest in growth and fuel the Indian economy. Read the article to know more. #midmarket #termfinancing #nbfcs #economictimes #growth #thoughtleader #opinionpiece

Securitisation data for the first half of the financial year show that pass-through transaction, the real securitisation in Indian context, has grown by almost 90% on YoY basis. This is unprecedented, and commendable. In this small write up, we have reviewed the development, which is part of a new wave of personal finance, unsecured lending, and increasing consumption expense. The country is aspirationally looking at the new regime of "kharcho India kharcho". There is increasing risk appetite at all levels, exactly the raw material for an exuberant funding and investment atmosphere. While the RBI puts a cautionary note, every seasoned person who has seen these booms in the past knows that we wait for a casualty (and we believe it is not us) before we get wise. https://lnkd.in/dtsaAma4

𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗗𝘂𝗿𝗮𝗯𝗹𝗲 𝗟𝗼𝗮𝗻𝘀 𝗶𝗻 𝗠𝗲𝘁𝗿𝗼 𝗖𝗶𝘁𝗶𝗲𝘀 𝗦𝘂𝗿𝗴𝗲 𝟯𝟮𝟯% 𝗢𝘃𝗲𝗿 𝗙𝗶𝘃𝗲 𝗬𝗲𝗮𝗿𝘀 Consumer durable loans in metro cities have surged by 323% from ₹6,061 crore in March 2019 to ₹25,654 crore in March 2024, driven by strong urban demand. The total consumer durable loans across India grew to ₹40,432 crore, with metro and urban areas comprising 77% of this. The RBI is monitoring this rise, increasing risk weights on unsecured loans to maintain financial stability. Experts advise banks to diversify to mitigate risks. #finance #news #ConsumerLoans #UrbanDemand #Banking Source:- https://lnkd.in/dAF5Kt-x

The financial sector plays a crucial role in shaping our understanding of a country's economic trajectory or simply the public's perception of it. One significant indicator of economic vitality is the growth in credit in the economy (for nations like ours, where credit penetration is still low), viz a viz loan transfer arrangements, particularly in the realm of securitization. In this brief article, we delve into the securitization volumes in India and their implications for the financial sector.

Outward remittance from India witnesses over 4% decline in July'23 According to data released by the Reserve Bank of India (RBI), in its monthly bulletin for July, outward remittances under the LRS scheme were USD 2.36 billion during the month as compared to USD 3.89 billion in June. Story by Anushka Sengupta #remittances #outwardremittances #tcs #remittance #rbi #reservebankofindia #travel #finance #liberalisedremittancescheme https://lnkd.in/gzuN5pVE

This insightful CNBC TV18 article reveals significant changes in the NBFC and banking sector. Established companies are experiencing steady growth while lending consolidation is becoming prominent. The implications are fascinating—how will this impact competition, access to credit, and financial inclusion? Interestingly, India's largest NBFCs and banks have grown their market share by 550 bps in the last three years, illustrating a clear consolidation trend. This trend has far-reaching significance for investors, regulators, and consumers alike, emphasizing the need for adaptability and strategic decision-making in a rapidly evolving market. While there are still ups and downs about the situation tailored to NBFC, India can hold onto grounds when such trends occur and invest mindfully. As stakeholders, we must engage in meaningful dialogue to ensure a balanced and inclusive financial landscape. The future holds both opportunities and challenges, and collaboration is the key to shaping a resilient and innovative financial sector. What are your thoughts on these trends? Share your insights below! #NBFC #BankingSector #FinancialInclusion #Innovation

Food for thought :-) -3.59 lac crore micro finance market size growing at 21% ( June 23 ) ( NBFC -MFI growing at 4% ) - Bank lending book 136 lac crore growing at 15% ( March 23 ) - Bank deposits book 187 lac crore growing at 10% ( March 23) - MF AUM 39 lac crore growing at 21% ( March 23 ) ( In Oct this is already at 47 lacs crore )

What is the role of RBI in NPA management? RBI managing NPA in public sector banks Restructuring of loans and advances is a procedure to modify the terms and conditions of an existing loan in order to alleviate the difficulties in repayment by the borrower due to temporary cash flow problems or general economic downturn. What is the NPA in India 2023? 5,71,515 crores (gross NPA ratio of 3.87%) as on 31.3. 2023.27 Dec 2023 What is the NPA percentage in India? India Non Performing Loans Ratio stood at 3.9 % in Mar 2023, compared with the ratio of 5.8 % in the previous year See the table below for more data. What is the next step after NPA? Loan Recall Notice: This is a total loan recall notice issued by the bank after the declaration of the account as an NPA account. This notice says to deposit the entire amount of the loan in a particular given time. This is the alarming stage for borrowers.

Market outlook & impact of recent RBI norms to increase risk weight on unsecured loans. 5 key reasons India remains a Buy on dips market 1. Corporate leverage at 15-year low. 2. Capacity utilization more than 70% indicating beginning of capex cycle 3. Bank NPAs at decade low 4. Corporate Profits to GDP back to 5%. 5. Nifty earnings CAGR from FY20-23 is 22%.. likely to remain strong going fwd.