India Financial Services Correspondent, Mumbai
Devidutta's Feed
Mar 5, 2015

Funding the unfunded: India helps small business borrow to grow

MUMBAI, March 5 (Reuters) – A new bank announced in India’s
annual budget last week could boost loans and cut borrowing
costs for the country’s cash-starved small businesses –
tailors, mechanics and phone booth operators who account for
around a fifth of the economy.

MUDRA bank – to be set up with $3.2 billion of capital to
help microfinancing firms to lend more – should help leverage up
firms which account for 40 percent of India’s exports, just as
India tries to rekindle growth, lenders and entrepreneurs say.

Mar 4, 2015

Banks hint at lower lending rates after RBI’s second prod

MUMBAI (Reuters) – Banks hinted they could cut lending rates as early as next month, after a second interest rate cut in two months heaped pressure on lenders that have largely kept rates unchanged, citing weak credit demand and a lack of liquidity.

On Wednesday, the Reserve Bank of India lowered its policy repo rate by 25 basis points to 7.50 percent.

Mar 4, 2015

India banks hint at lower lending rates after RBI’s second prod

MUMBAI, March 4 (Reuters) – Indian banks hinted they could
cut lending rates as early as next month, after a second
interest rate cut in two months heaped pressure on lenders that
have largely kept rates unchanged, citing weak credit demand and
a lack of liquidity.

On Wednesday, the Reserve Bank of India lowered its policy
repo rate by 25 basis points to 7.50 percent.

Feb 28, 2015

India to inject $1.3 bln to shore up state banks

MUMBAI/NEW DELHI, Feb 28 (Reuters) – India will inject 79.4
billion rupees ($1.3 billion) into state-owned banks in the next
fiscal year to bolster their capital reserves, a
smaller-than-expected sum which means the sector’s heavyweights
may have to turn to the market or curb lending.

Successive governments have poured billions into India’s
bad-debt burdened state banks, even while warning the support
was unsustainable. The Reserve Bank of India estimates lenders
need more than $40 billion to meet global Basel III norms by
2019.

Feb 14, 2015

HDFC Bank Q3 profit up 20.2 percent as loan demand rises

MUMBAI (Reuters) – India’s HDFC Bank Ltd said on Saturday its quarterly net profit grew by a fifth, helped by a surge in corporate and retail credit demand amid hopes of a pick-up in Asia’s third-largest economy.

New Delhi expects the economy to grow an annual 7.4 percent in the year ending in March, faster than a revised 6.9 percent a year earlier.

Feb 14, 2015

India’s HDFC Bank Q3 profit up 20.2 pct as loan demand rises

MUMBAI, Feb 14 (Reuters) – India’s HDFC Bank Ltd
said on Saturday its quarterly net profit grew by a fifth,
helped by a surge in corporate and retail credit demand amid
hopes of a pick-up in Asia’s third-largest economy.

New Delhi expects the economy to grow an annual 7.4 percent
in the year ending in March, faster than a revised 6.9 percent a
year earlier.

Feb 13, 2015

SBI surprises with smaller rise in bad loans

MUMBAI (Reuters) – State Bank of India (SBI) delivered a smaller-than-expected increase in bad loans in the third quarter, sending its shares 8 percent higher, even as the lender said on Friday it was too soon to say the worst was over.

Shares in India’s biggest lender by assets notched up their strongest gain in almost nine months, after it reported gross bad loans rose to 4.9 percent of total loans — only a marginal uptick from 4.89 percent in the previous quarter.

Feb 13, 2015

India’s largest bank surprises with smaller rise in bad loans

MUMBAI, Feb 13 (Reuters) – State Bank of India (SBI)
delivered a smaller-than-expected increase in bad loans
in the third quarter, sending its shares 8 percent higher, even
as the lender said on Friday it was too soon to say the worst
was over.

Shares in India’s biggest lender by assets notched up their
strongest gain in almost nine months, after it reported gross
bad loans rose to 4.9 percent of total loans — only a marginal
uptick from 4.89 percent in the previous quarter.

Feb 9, 2015

RBI tightens compliance after suspected Iran export scam

NEW DELHI/MUMBAI (Reuters) – The Reserve Bank of India (RBI) has ordered banks to tighten monitoring of export finance deals after investigators uncovered an invoicing scam they suspect is part of a multi-billion-dollar scheme to exploit Western financial sanctions against Iran.

Although the RBI’s ruling made no mention of the scheme that targeted UCO Bank, an central bank source familiar with the matter said it was related to a probe into the suspected misuse of up to $3.2 billion in export advances paid out by the bank.

Feb 9, 2015

India central bank tightens compliance after suspected Iran export scam

NEW DELHI/MUMBAI, Feb 9 (Reuters) – India’s central bank has
ordered banks to tighten monitoring of export finance deals
after investigators uncovered an invoicing scam they suspect is
part of a multi-billion-dollar scheme to exploit Western
financial sanctions against Iran.

Although the Reserve Bank of India’s ruling made no mention
of the scheme that targeted UCO Bank, an RBI source familiar
with the matter said it was related to a probe into the
suspected misuse of up to $3.2 billion in export advances paid
out by the bank.