Study of Shadow Banking in India with a Specific Reference to P2P-NBFCS
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Creating a Micro, Small, and Medium Enterprise Focused Credit Risk Database in India: an Exploratory Study
MARCH 2021 Creating a Micro, Small, and Medium Enterprise Focused Credit Risk Database in India: An Exploratory Study A CASI Working Paper Savita Shankar Lecturer, School of Social Policy & Practice University of Pennsylvania CASI 2019-21 Non-Resident Visiting Scholar CENTER FOR THE ADVANCED STUDY OF INDIA CREATING A MICRO, SMALL, AND MEDIUM ENTERPRISE FOCUSED CREDIT RISK DATABASE IN INDIA: AN EXPLORATORY STUDY Savita Shankar Lecturer, School of Social Policy & Practice, University of Pennsylvania CASI 2019-21 Non-Resident Visiting Scholar A CASI Working Paper March 2021 © Copyright 2021 Savita Shankar & Center for the Advanced Study of India ABOUT THE AUTHOR SAVITA SHANKAR is a CASI 2019-21 Non-Resident Visiting Scholar and a Lecturer at the School of Social Policy & Practice at the University of Pennsylvania. She earned her Ph.D. at the Lee Kuan Yew School of Public Policy, National University of Singapore. She has taught at the Keio Business School, Japan; the Asian Institute of Management, Philippines; and the Institute for Financial Management and Research, Chennai, India. Prior to her academic career, she worked with financial institutions in India for ten years (Export Import Bank of India and ICICI Bank) focusing on project appraisals and stress asset management. Her research interests include issues related to micro, small and medium enterprises, financial inclusion, and social entrepreneurship. She has consulted for the Asian Development Bank as well as for Habitat for Humanity (Cambodia and Philippines). Her ongoing research includes a collaborative project on the potential for setting up a credit risk database for micro, small, and medium enterprises in India. -
Capital Letter
CAPITAL LETTER Volume 2 February 7,7, 20102010 IssueIssue 22 Greetings from FundsIndia! FundsIndia Equity Investment Platform! My name is Srikanth; I’m a director at FundsIndia. Thanks for taking the time out to read this February 2010 our monthly news letter. Over the last two issues, we have been teasing you with announcements about FundsIndia’s new equity investment platform. Well, it is now here! We have launched the equity investment platform which allows investors to invest in stocks in the National Stock Exchange. Importantly, it allows in- vestments in ETFs such as Gold and Index ETFs. The platform is built to provide an easy, relatively safe way for investors to get exposed to direct stock market. With an eye to providing investors a less risky way to invest in the stock market, we have consciously restricted margins and shorting in our platform—they both provide risky ways to make and lose money in the market that we are not comfortable offering them to our investors. To use the equity investment platform, our existing customers will need to fill a short form and request to open an equity trading and Demat account with us. As always, account opening is free of cost—even demat fees are waived till the second year! We sent out a brief email to our customers to let them know that we have launched it, and many of you have signed up for it. Thanks! Others—please let us know if you have any questions about this new platform. We are very excited about this, and think it really completes the investment picture for our customers! Happy Investing! Top MF schemes in FundsIndia (for January 2010) Equity schemes Debt Schemes Reliance Regular Savings—Equity Reliance FRF (G) IDFC Premier Equity—A Templeton India ST Income HDFC Top 200 UTI FRF—ST (G) SBI Magnum Contra UTI Mahila Unit scheme Sundaram BNPP Select Midcap Reliance MIP (QD) KYC Compliance made mandatory for all! In a recent circular, the collective bodies of mutual fund companies have decided to make it mandatory for mutual fund investors to be KYC compliant regardless of investment amount. -
Terms and Conditions for the Icici Bank Indian Rupee Travel Card
TERMS AND CONDITIONS FOR THE ICICI BANK INDIAN RUPEE TRAVEL CARD The following terms and conditions (“Terms and Conditions”) apply to the ICICI Bank Travel Card facility provided by ICICI Bank. For your own benefit and protection you should read these terms and conditions carefully before availing ICICI Bank Indian Rupee Travel Card. These are ICICI Bank’s standard terms and conditions on the basis of which it provides the ICICI Bank Indian Rupee Travel Card. If you do not understand any of the terms or conditions, please contact us for further information. Your use of the ICICI Bank Indian Rupee Travel Card will indicate your acceptance of these terms and conditions. ICICI Bank Indian Rupee Travel Card is issued by ICICI Bank and distributed by ICICI Bank UK PLC to the customers in the United Kingdom (UK). ICICI Bank Limited is incorporated in India and regulated by the Reserve Bank of India (RBI). ICICI Bank UK PLC is a 100% owned subsidiary of ICICI Bank Limited. ICICI Bank UK PLC’s role is solely to distribute the INR Travel Cards to individuals in the UK and assist in facilitating the documentation to initiate the relationship with ICICI Bank. Definitions In these Terms and Conditions, the following words have the meanings set out hereunder, unless the context indicates otherwise. “ICICI Bank Limited”, means ICICI Bank Limited, a company incorporated under the Companies Act. 1956 of India and licensed as a bank under the Banking Regulation Act, 1949 and having its registered office at Landmark, Race Course Circle, Vadodara 390 007, and its corporate office at ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400 051. -
Girish Vasudeva N Koliyote
AXIS/CO/CS/365/2020-21 9th November 2020 The Chief Manager (Listing & Compliance) The Senior General Manager (Listing) National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor 1st Floor, New Trading Ring, Rotunda Building Plot No. C/1, “G” Block P. J. Towers, Dalal Street Bandra-Kurla Complex, Fort, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 NSE Code: AXISBANK BSE Code: 532215 Dear Sir(s), SUB: NOTICE OF POSTAL BALLOT Enclosed, please find a copy of Postal Ballot Notice dated 28th October 2020 together with the Explanatory Statement thereto, seeking approval of the Members of the Bank through Postal Ballot, for the following Special/Ordinary Resolutions: 1. Re-appointment of Smt. Ketaki Bhagwati (DIN 07367868) as an Independent Director of the Bank, for her second term of three (3) years with effect from 19th January 2021. 2. Appointment of Smt. Meena Ganesh (DIN: 00528252) as an Independent Director of the Bank, for a period of four (4) years with effect from 1st August 2020. 3. Appointment of Shri Gopalaraman Padmanabhan (DIN: 07130908) as an Independent Director of the Bank, for a period of four (4) years with effect from 28th October 2020. Please note that the Results of Postal Ballot will be declared not later than 48 hours of conclusion of voting through e-voting i.e. on or before 11th December 2020. You are requested to take note of above and arrange to bring it to the notice of all concerned. Thanking You. Yours sincerely, For Axis Bank Limited GIRISH Digitally signed by GIRISH VASUDEVAN VASUDEVA KOLIYOTE Date: 2020.11.09 N KOLIYOTE 15:30:12 +05'30' Girish V. -
The Institute of Cost Accountants of India
THE INSTITUTE OF Telephones : +91-33- 2252-1031/1034/1035 COST ACCOUNTANTS OF INDIA + 91-33-2252-1602/1492/1619 (STATUTORY BODY UNDER AN ACT OF PARLIAMENT) + 91-33- 2252-7143/7373/2204 CMA BHAWAN Fax : +91-33-2252-7993 12, SUDDER STREET, KOLKATA – 700 016. +91-33-2252-1026 +91-33-2252-1723 Website : www.icmai.in DAILY NEWS DIGEST BY BFSI BOARD, ICAI July 4, 2021 EDs in Public Sector Banks: Banks Board Bureau recommends 10 candidates in 2021-22: The Banks Board Bureau (BBB) has recommended ten candidates to the panel that will be used for filling vacancies of Executive Directors in various Public Sector Banks (PSBs) in the year 2021-22. These names have been shortlisted after the BBB, which is the head hunter for the government for filling top level posts in PSBs, insurance companies and other financial institutions, interfaced with 40 candidates (chief general managers and general managers) from various PSBs on July 2 and 3 for the position of Executive Directors, sources close to the development said. The ten names that have been recommended (in the order of merit) for the Panel are Rajneesh Karnatak; Joydeep Dutta Roy; Nidhu Saxena, Kalyan Kumar; Ashwani Kumar; Ramjass Yadav, Asheesh Pandey, Ashok Chandra; A V Rama Rao and Shiv Bajrang Singh. This panel will be operated in the financial year 2021–22, subject to availability of vacancies in the panel year 2021–22, sources said. https://www.thehindubusinessline.com/money-and-banking/eds-in-public-sector-banks-banks-board- bureau-recommends-10-candidates-in-2021-22/article35125016.ece Supreme Court seeks response of Centre, RBI on plea of PNB against disclosure of info under RTI: The Supreme Court has refused to grant interim stay on the RBI’s notice asking Punjab National Bank to disclose information such as defaulters list and its inspection reports under the RTI Act, and sought responses from the Centre, federal bank and its central public information officer. -
Kotak Mahindra Bank Strong Fundamentals, Positive Performance
Kotak Mahindra Bank Strong fundamentals, Positive performance Powered by the Sharekhan 3R Research Philosophy Banks & Finance Sharekhan code: KOTAKBANK Result Update Update Stock 3R MATRIX + = - Summary Kotak Mahindra Bank (KMB) posted positive results for Q4FY2021, where while the Right Sector (RS) ü core operational performance was largely in-line, asset-quality performance was positive. Right Quality (RQ) ü Asset quality improved as KMB saw sequentially lower GNPA/NNPAs for Q4FY2021 at 3.25%/1.21% in Q4FY2021 as compared to 3.27%/1.24% levels in Q3FY2021 Right Valuation (RV) ü (proforma basis), with a q-o-q decline in SMA-2 accounts. The bank’s management commentary was positive, which is encouraging. KMB is + Positive = Neutral - Negative well capitalised, with low drag from NPAs and strong leadership, which we believe allows the right mix to the bank. What has changed in 3R MATRIX We maintain Buy on the stock with our SOTP-based PT of Rs. 2,130. Old New Kotak Mahindra Bank (KMB) posted positive results for Q4FY2021. The bank’s core operational performance was largely inline. Asset-quality performance enthused for the RS quarter. NII came at Rs. 3,842 crore, up 8% y-o-y and nearly flat on a q-o-q comparison, which was below expectations. PPOP stood at Rs. 3,407 crore, up 25% y-o-y and 17.4% q-o-q, which RQ was mainly helped by strong other income growth as the bank saw fee income to grow to Rs. 1,378 crore for Q4FY2021, up 8.5% y-o-y but up by ~23% q-o-q. -
EASE REFORMS for PUBLIC SECTOR BANKS CLEAN & SMART Banking for Aspiring India CLEAN Banking
E nhanced A ccess & S ervice E xcellence Insolvency and Bankruptcy Code Team PSB EASE REFORMS FOR PUBLIC SECTOR BANKS CLEAN & SMART Banking for Aspiring India CLEAN Banking Clean credit LORE Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to Leveraging data identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close Ensuring accountability collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a Action against defaulters private company with offices in more than 90 cities in 50 countries. For more information, please visit bcg.com. SMART Banking NPA recovery Speedy Indian Banks’ Association (IBA), the only advisory body for banks in India, was set up in 1946 as an association to discuss vital issues of Banks. The onward journey of IBA has been Multi-channel reach progressive and enriched by the development of India’s banking sector since independence. Having bestowed with the status of the “torch bearer” for the banking industry, IBA has initiated several path breaking policies during ccessible & affordable the last seven decades which have eventually A transformed the banking sector. Over a period ofA time IB has evolved as the “Voice of the Indian Banking Industry”. At present, IBA has 252 Members, 145 Ordinary Members comprising Public, Private, Foreign and Responsive Cooperative Banks and 107 financial institutions and Banking related organizations as Associate Members. -
Union Budget 2015-16 a Well-Balanced Act
Visit us at www.sharekhan.com February 28, 2015 Union Budget 2015-16 A well-balanced act The Union Budget 2015-16 is a good effort to rejuvenate security net through schemes to provide health insurance, and revive the economy. Though there are no big-bang life insurance and pension schemes at nominal rates. Keeping reforms as was expected by some sections of the market, with the tradition, the finance minister has also outlined the the finance minister has managed to meet the key long-term policy priorities of the Narendra Modi government expectation of a substantial increase in the allocation (up that encompass housing, power and water for all by the 75th by 0.5% of the GDP) for capital spending in the infrastructure year of India’s independence, ie 2022. segments, namely roads, railways and irrigation. We view From the capital market perspective, the budget is positive this as the biggest positive of the budget (which is also in in terms of favourable tax proposals related to the removal sync with the higher capital spending envisaged by the of tax on offshore funds managed from India and clarity on railway minister in the rail budget earlier) since it is essential GAAR, which has been postponed by two years and would be to revive industrial activity and investment cycle, and put effective for prospective transactions. The budget also the economy on a virtuous growth cycle. proposes measures to increase financial savings through gold On the other hand, the target to achieve a fiscal deficit of 3% monetisation products and tax-free bonds aimed at funding of the GDP by FY2017 has instead been extended by one year capital investments in the railways, roads and other to FY2018 which is negative in terms of influencing the pace of infrastructure projects. -
Msme Report 2020
OCTOBER 2020 ANALYTICAL CONTACTS TransUnion CIBIL Vipul Mahajan [email protected] Saloni Sinha [email protected] SIDBI Rangadass Prabhavathi [email protected] Table of Contents 02 Executive Summary 04 MSME Lending Portfolio Trends 05 Geography: Credit growth in MSME Lending 06 MSME Lending market share: NBFCs losing market share 07 Impact of Emergency Credit Line Guarantee Scheme (ECLGS) on MSME Lending 10 Behavioral changes in COVID-19 pandemic times to MSME Lending industry 18 NPA Trends in MSME Lending 20 Structurally strong MSMEs continue to be resilient 23 Sectoral Risk Assessment of MSMEs 24 Conclusion 01 Executive Summary ECLGS boosted credit infusion to MSMEs: Credit infusion to MSMEs declined sharply post the lockdowns due to COVID-19 pandemic. The ECLGS scheme implementation brought the much needed boost and significantly helped in reviving credit infusion to MSMEs post its announcement in May 2020. Catalysed by this scheme, Public sector banks disbursed 2.6 times higher loan amount to MSMEs in Jun’20 over Feb’20. Even private sector banks’ credit disbursals in the MSME segment for Jun’20 were back at Feb’20 levels. Geographies which experienced less stringent lockdowns showed relatively better credit infusion and lesser decline in credit outstanding: MSME lending in Metro regions had the sharpest drop during lockdown and relatively lower rate of revival post-ECLGS. While number of MSME loans disbursed in Urban, Semi-urban and Rural regions for Jun’20 is over 3 times that of Feb’20,it was at 1.86 times for Metro regions. Similar trend is observed at state level- i.e. -
ICICI Bank Strong Performance, Attractive Franchise
ICICI Bank Strong performance, attractive franchise Powered by the Sharekhan 3R Research Philosophy Banks & Finance Sharekhan code: ICICIBANK Result Update Update Stock 3R MATRIX + = - Summary Right Sector (RS) ü ICICI Bank posted strong Q4FY2021 results with core operational performance coming higher than expectations, lower-than-expected slippages and sequentially improving Right Quality (RQ) ü asset quality are key positives. GNPA/NNPA ratio improved to 4.96%/1.14% (versus pro forma GNPA/NNPA of 5.42%/1.26% Right Valuation (RV) ü in Q3FY2021) and watchlist book declined; management commentary was positive and indicated strong growth in FY2022E. = - + Positive Neutral Negative The bank is available at 2.4x/2.1x its FY2022E/FY2023E BVPS. The stock has corrected by ~16% from its highs, and we believe valuations are attractive. What has changed in 3R MATRIX We maintain Buy rating on the stock with a revised SOTP-based PT of Rs. 800. Old New ICICI Bank posted strong Q4FY2021 results with core operational performance coming higher than expectations, lower-than-expected slippages, and sequentially improving asset quality RS being key positives. The quarter saw core operating performance above expectations with NII growth at 16.8% y-o-y, led by recovery in loan growth and NIMs improving by 17 bps q-o-q RQ to 3.84%. Strong traction in advances growth was seen with domestic loan growth posting 18% y-o-y growth. Going forward, as the bank looks to build on growth with a focus on a well- RV rated book, pickup in advances, and opex/credit cost will be key support and positives. -
Equity Research October 15, 2020 INDIA
` Equity Research October 15, 2020 INDIA BSE Sensex: 40795 BFSI ICICI Securities Limited is the author and MSME credit – few traits of confidence emerging distributor of this report MSME segment was anticipated to bear the biggest brunt of prolonged disruption and be the most vulnerable amidst Covid-19 pandemic – more so vindicated by a sharp decline in credit flow to MSME sector in April-May’20. However, ECLGS scheme (Rs1.88trn sanctioned and Rs1.36trn disbursed till date) revived the credit flow since June’20 and currently credit enquiries on MoM basis have settled at >85% of pre-Covid level, as per latest TransUnion CIBIL data. Further, taking clues from following parameters, pain seems manageable to financiers for now: A) the proportion of credit enquires from new-to-credit and new-to-bank customers reaching pre-Covid level of 31%/23%, respectively, in August’20 (reflecting financiers confidence in few sub-segments); B) ~81% of eligible MSMEs for ECLGS scheme belong to better-rated SMEs ‘up to CMR-6’ (with liquidity support can revive faster). Geographically, states like Bihar, Jharkhand, Punjab and Kerala are leading the bounce back while pace of revival is slow in Maharashtra and Delhi. Few traits of confidence emerging in MSME segment will benefit banks with higher exposure namely SBI, Axis, CUBK, Federal and DCB. Timely implementation of ECLGS schemes kick-started credit flow to MSME - MSME credit enquiries dipped during Covid-19 pandemic to 23% in Apr’20 (of Feb’20 level) and 40% in May’20. Sanctions under ECLGS scheme kick-started the much-needed revival in enquiries – with cumulative Rs1.88trn sanctions enquiries are settling at >85% of pre-Covid level now. -
The Institute of Cost Accountants of India
THE INSTITUTE OF Telephones : +91-33- 2252-1031/1034/1035 COST ACCOUNTANTS OF INDIA + 91-33-2252-1602/1492/1619 (STATUTORY BODY UNDER AN ACT OF PARLIAMENT) + 91-33- 2252-7143/7373/2204 CMA BHAWAN Fax : +91-33-2252-7993 12, SUDDER STREET, KOLKATA – 700 016. +91-33-2252-1026 +91-33-2252-1723 Website : www.icmai.in DAILY NEWS DIGEST BY BFSI BOARD, ICAI July 1, 2021 Reserve Bank of India sets July 30 deadline for banks to move current accounts: The Reserve Bank of India (RBI) has set a deadline of July 30 for banks to give up current accounts of all companies where their exposure is below a cut-off decided by the regulator. RBI communicated this in a letter to banks a fortnight ago, two senior bankers told ET.The move, initiated more than a year ago, could trigger a migration of many lucrative current accounts - which lower a bank's fund cost and cash management business - from MNC banks to public sector lenders and some of the large private sector Indian banks.According to the new rule, a bank with less than 10% of the total approved facilities - which include loans, non-fund businesses like guarantees, and daylight overdrafts (or intra-day) exposure - to a company is barred from having the client's current account. "RBI is probably upset that banks are taking a long time to shift the accounts. But the delay may also be because several PSU banks may not be ready with the technology. Now, RBI can't direct companies which have been doing business with a bank for years to move to another bank.