India Financial Services Correspondent, Mumbai
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Apr 24, 2015

Infosys bets on new services to push sales to $20 bln by 2020

MUMBAI, April 24 (Reuters) – Infosys Ltd, India’s
second-largest software services exporter, on Friday posted
quarterly net profit that lagged most analyst expectations,
dampening hopes of a quick turnaround after top management
changes.

Bengaluru-based Infosys, once seen as the bellwether of
India’s $150 billion IT services industry, has in recent years
struggled to innovate and retain market share due to a staff
exodus that also impacted its ability to win lucrative deals.

Apr 24, 2015

Banks set for cost increases on new loan provisioning rules

MUMBAI (Reuters) – India’s banks could see their lending-related costs rise by up to a fifth as a recent rule change means they must make bigger provisions for restructured debt, crimping their profits at a time when consumers and firms are starting to borrow more.

This could make banks cautious about lending, hurting an economy that is emerging from its weakest growth since the 1980s. The stricter provisioning norms may also affect the recovery chances of troubled borrowers as more loans are classified as bad instead of attempts to restructure them.

Apr 24, 2015

Indian banks set for cost increases on new loan provisioning rules

MUMBAI, April 24 (Reuters) – Indian banks could see their
lending-related costs rise by up to a fifth as a recent rule
change means they must make bigger provisions for restructured
debt, crimping their profits at a time when consumers and firms
are starting to borrow more.

This could make banks cautious about lending, hurting an
economy that is emerging from its weakest growth since the
1980s. The stricter provisioning norms may also affect the
recovery chances of troubled borrowers as more loans are
classified as bad instead of attempts to restructure them.

Apr 19, 2015

India’s banks turn to consumer loans to counter corporate slowdown

MUMBAI, April 20 (Reuters) – Indian banks, hoping to offset
a slow recovery in corporate lending, are pushing into credit
cards and personal loans, using blanket advertising, cold call
campaigns and even sending employees to malls to lure customers.

Lending to companies has traditionally been the mainstay for
banks in Asia’s third-largest economy. But as India emerges from
two years of slower economic growth, those loans are sour, large
investment projects are stalled and company profits lacklustre.

Apr 8, 2015

After trimming rates, banks wary of more radical cuts

MUMBAI (Reuters) – Banks warned on Wednesday that moves this week to trim their interest rates after months of central bank pressure would not lead to radical cuts ahead, as lenders fret over stubbornly weak credit growth and still high funding costs.

Those headaches, they say, could override the benefits including lower provisions on their books as fewer loans sour.

Apr 8, 2015

After trimming rates, India’s banks wary of more radical cuts

MUMBAI, April 8 (Reuters) – Indian banks warned on Wednesday
that moves this week to trim their interest rates after months
of central bank pressure would not lead to radical cuts ahead,
as lenders fret over stubbornly weak credit growth and still
high funding costs.

Those headaches, they say, could override the benefits
including lower provisions on their books as fewer loans sour.

Apr 7, 2015

Under pressure, big banks trim lending rates at last

MUMBAI (Reuters) – Three of India’s largest banks said on Tuesday they would trim lending rates, yielding to months of central bank pressure with the first major cut in borrowing costs since a monetary easing cycle began in January.

The moves came hours after a policy review in which the Reserve Bank of India left rates unchanged but again berated the sector for holding up transmission of changes in monetary policy to the economy. The RBI has cut rates twice this year.

Apr 7, 2015

Under pressure, India’s big banks trim lending rates at last

MUMBAI, April 7 (Reuters) – Three of India’s largest banks
said on Tuesday they would trim lending rates, yielding to
months of central bank pressure with the first major cut in
borrowing costs since a monetary easing cycle began in January.

The moves came hours after a policy review in which the
Reserve Bank of India left rates unchanged but again berated the
sector for holding up transmission of changes in monetary policy
to the economy. The RBI has cut rates twice this year.

Apr 7, 2015

RBI puts pressure on banks to lower lending rates

MUMBAI (Reuters) – The Reserve Bank of India (RBI) proposed on Tuesday that banks should decide lending rates based on their marginal cost of funding, hoping the shift will persuade them to lower lending rates faster in response to central bank easing measures.

The RBI kept its key policy rate on hold at 7.5 percent on Tuesday, but is disappointed that after two rates cuts earlier this year just four of 45 Indian banks have lowered their lending rates.

Apr 7, 2015

India’s RBI puts pressure on banks to lower lending rates

MUMBAI, April 7 (Reuters) – The Reserve Bank of India
proposed on Tuesday that banks should decide lending rates based
on their marginal cost of funding, hoping the shift will
persuade them to lower lending rates faster in response to
central bank easing measures.

The RBI kept its key policy rate on hold at 7.5 percent on
Tuesday, but is disappointed that after two rates cuts earlier
this year just four of 45 Indian banks have lowered their
lending rates.