DELINQUENCY IN MICROLENDING
Make microlending reg activity-based
Microfinance lending is experiencing stress due to regulatory changes aimed at curbing over-lending. Relaxed rules in 2022 fueled a surge in unsecured credit, leading to new restrictions on loan numbers and borrowers. While this has caused a credit squeeze and increased delinquency, it's expected that government spending and economic recovery will eventually stabilize the sector.
MFI loans decline 2.3 pc in June qtr, NPAs rise: Report
Loan portfolio of microlenders fell by 2.3 per cent in April-June, reaching Rs 4.32 lakh crore. Non-performing assets surged during this period. Over-leveraging among borrowers has been flagged as a key issue. There was also a significant fall in loan disbursements. Non-banking finance companies showed some growth, while banks had the steepest decline.
Mega success on the microcredit front
The priority accorded to microcredit on this scale has some obvious benefits. GoI is pushing the programme to build manufacturing capacity at the grassroots, increase employment and improve financial inclusion. Apart from the economic gains from entrepreneurship and job creation, there are social benefits, too, in empowering women and other segments traditionally handicapped by lack of access to credit.
The HDFCs, a merger for champions
The logic for the merger, and earnings potential, become inescapable when HDFC Bank does not have to pay a premium over the market price for a business run extremely well within the family.
ET View: HDFC merger spells consolidation in India's private banking space
HDFC Bank, in turn, can use its heftier balance sheet to write bigger loan cheques. The costs of the merger have been brought down by the recent streamlining of reporting and delinquency provisioning rules for non-bank finance companies and banks. And HDFC¡¯s exposure to affordable housing and micro-lending makes it easier for its loan book to sit within the development finance requirements of HDFC Bank.
Deregulation to push down lending rates for lowest bracket, microfinance may get the freedom to bloom
Differentiated lending rates and new product development is likely to drive India¡¯s microfinance market going forward with the Reserve Bank of India planning to create an open architecture for all lenders and deregulating the loan pricing.
RBI raises concerns over dual microfinance regulation in Assam
During the first meeting of the newly formed Assam government and microfinance stakeholders in Guwahati on Saturday, RBI officials are said to have argued that banks and non-bank microlenders, which are regulated by it and operate within a laid down framework, should not come under the purview of the state-level Act.
Rural is the next frontier: Sumant Kathpalia, CEO of IndusInd Bank
No talks with Kotak on merger and we are looking to target niche areas like SME funding, affordable housing, asserts the CEO of IndusInd Bank.
Why is this MNC-backed midcap getting big premium over its peers
The market share of the NBFC is set to rise after it acquired Madura Microfinance (MMFL) in March 2020. Analysts pegged CreditAccess¡¯ market share in the higher fragmented market to 5 per cent, with a dominant market shares in Tamil Nadu, Maharashtra and Madhya Pradesh.
10-15% moderation in salaries not to impact lending practice: HDFC Bank
A pent-up demand for vehicles and social distancing needs, coupled with the introduction of digital inputs to manage customer journey by banks will lead to a faster uptick in auto sales, which were sagging before the lockdown and came to a standstill in the last two months, the bank's country head for retail lending Arvind Kapil said.
GIC raises stake in Bandhan Bank to 4.49%
The bank reported the change in shareholding on Tuesday.
Only dozen-odd MFIs can gain from RBI's special liquidity window
ast April 17, the central bank announced a Rs 50,000-crore focused liquidity injection.
The next debt crisis: Small borrowers¡¯ big defaults
Microfinance is showing early signs of loans going bad en masse. And the problem is complicated by aggressive strategies of larger lenders.
Affordable home-loans next threat to banks: Moody's-Icra report
Competitive pressures and larger exposure to the self-employed are the prime reasons for the build-up of stress in the segment, a report said.
Affordable housing safer bet for lenders with under 1% NPA
With loan growth rate of 23 per cent over almost the past five years and low delinquency rates of under 1 per cent, the affordable housing segment offers strong growth opportunities for lenders, says a report.
MFIs looking at risk of rising delinquencies, credit costs amid slow collections
Demonetisation had slowed the disbursement momentum of micro finance companies, simultaneously raising the spectre of more delinquencies.
Credit bureaus help Microfinance institutions bring down loan defaults
MFIs have been able to bring down the rate of loan defaults three years after an Andhra Pradesh crackdown led to a crisis in the industry.
MFI delinquencies down 33% in last 6 months: Equifax
Micro-lenders in the country have witnessed a 33% improvement in delinquency by number of accounts, credit information company Equifax said today.
MFIs ready to halve Andhra Pradesh loan rates
Cash-strapped micro-lenders in Andhra Pradesh are toying with the idea of recasting distressed loans by almost halving interest to 15%.
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