Thursday, April 15

Month: December 2020

icra: Collection efficiency in retail loan pools of NBFCs, HFCs remains steady in October: ICRA

icra: Collection efficiency in retail loan pools of NBFCs, HFCs remains steady in October: ICRA

Finance
Mumbai: Domestic rating agency ICRA Ratings on Thursday said the collection efficiency in its rated retail pools originated by NBFCs and HFCs remained steady in October, compared to September, for almost all retail asset classes. While the total collections, including advances, overdues and pre-payments, are indicating a significant recovery, the current collections inclusive of overdue (against current month billings) continue to remain below the pre-lockdown levels, the agency said in a report. They are in the range of 81-95 per cent across asset classes in October 2020, it added. In October, the collection efficiency in housing loan and loan against property (LAP) segments stood at 207 per cent. For SME, commercial vehicle and microfinance institutions (MFIs), the collection efficiency...
Here’s everything the Federal Reserve could do at its policy meeting next week

Here’s everything the Federal Reserve could do at its policy meeting next week

investment
Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing on "The Quarterly CARES Act Report to Congress" on Capitol Hill in Washington, December 1, 2020.Susan Walsh | Pool | ReutersThe Federal Reserve heads into its meeting next week in a familiar place, with a teetering economy that could be in further danger unless Congress approves more dollars to support those still getting slammed by the coronavirus pandemic.Also familiar ground: The Fed has limited policy options to help boost activity and is left now with some language tinkering on what it would take to raise interest rates in the future, and what it can do to help things along through its asset purchase program.Markets, then, will be left to watch for policy nuance and nudges rather than the kin...
NBFCs set to lose market share to banks: Crisil

NBFCs set to lose market share to banks: Crisil

Finance
MUMBAI: NBFCs are set to lose market share to commercial banks specially in the retail space. After outpacing banks in terms of loan growth for more than two years, NBFCs are set to slowdown in growth as the sector faces funding challenges due to COVID induced funding challenges and competition from commercial banks, according to ratings firm Crisil. “Despite an estimated GDP growth of 10% next fiscal, overall NBFC sector growth is likely to be slower because access to funding remains a challenge due to concerns about the impact of the pandemic on asset quality" said Gurpreet Chhatwal, President, Crisil Ratings. "Additionally, competition is expected to be more intense from banks – which are flush with low-cost deposits and better placed with improved capital buffer than in the previous y
Wealthfront names Sheila Bair and Thomas Curry to banking advisory group

Wealthfront names Sheila Bair and Thomas Curry to banking advisory group

investment
Wealthfront has named former Federal Deposit Insurance Corporation head Sheila Bair and ex-Comptroller of Currency Thomas Curry to an advisory group created to help the fintech firm push further into financial services, CNBC has learned.Bair is best known for steering the FDIC through the 2008 financial crisis, pushing back against taxpayer bailouts of big banks and warning of the risks of subprime mortgages. Curry is a former FDIC board member who served as OCC head from 2012 to 2017."Sheila's and Tom's combined experience in the banking industry will be invaluable to Wealthfront as we continue our efforts to rebuild a new, better way to bank that makes money with the client, not from them," Wealthfront CEO Andy Rachleff said in a statement.Wealthfront was co-founded in 2008 by Rachleff ...
New dividend policy not to affect most NBFCs: Report

New dividend policy not to affect most NBFCs: Report

Finance
Mumbai: The new dividend distribution policy for non-banking lenders is unlikely to impact most of them as their payout ratios have been hovering at 10-20 for the past three years, according to a report. The Reserve Bank of India on December 9 issued a new draft dividend distribution policy for NBFCs to ensure financial discipline and transparency under which only those NBFCs that meet the prescribed prudential requirements on capital and asset quality will be allowed to pay dividends. The new payout norms assume importance as unlike banks, currently, there are no guidelines in place concerning the distribution of dividend by NBFCs. The RBI had on October 4 asked banks to not to pay dividend this year given their stretched balance sheets pummelled by the pandemic. One of the norms pres...
Morgan Stanley’s third Space Summit event: Investing takeaways

Morgan Stanley’s third Space Summit event: Investing takeaways

investment
SpaceX's Crew Dragon Endeavour seen docked with the International Space Station on July 1, 2020.NASAMorgan Stanley held its annual space summit virtually this year due to the coronavirus pandemic, but analyst Adam Jonas told CNBC that hundreds of investors and observers participated in the event on Tuesday as interest in the space industry booms.Jonas, known on Wall Street for his early calls on Tesla, has been looking at the fast-growing space industry.Here's what space investors learned at Morgan Stanley's third space summit:The event featured 20 space companies, including: HawkEye 360, MDA, PredaSAR, Planet Labs, Spire Global, Blue Origin, Virgin Galactic, Telesat, ViaSat, SES, Virgin Orbit, ABL Launch Systems and Rocket Lab.Government representatives also spoke – including from the U.
IL&FS puts corporate loans worth Rs 5,000 crore on the block

IL&FS puts corporate loans worth Rs 5,000 crore on the block

Finance
IL&FS financial services arm IFIN has put NPA accounts of Essar Shipping, Reliance Naval & Engineering, Unitech, Parsvnath Developers, Ansal API among others on the block. Corporate loans of 70 companies worth Rs 5,000 crore have put been on the block and will be put through a bid process. The deal will be on cash consideration basis with the beleaguered group seeking one consolidated bid for the entire portfolio. Applicants have to submit binding bids by next month. IFIN is owed a principal amount of Rs 209 crores from Unitech Limited, Rs 174 crore from Parsvnath Developers, Rs 135 crore from Ansal Group, Rs 25 crore from Essar Shipping and Rs 5 crore from Reliance Naval. IFIN has assets under management of Rs 18,000 crore involving external and internal loans and investments, a ...
ICICI bank: ICICI opens new front with mobile app interoperability, other banks may follow

ICICI bank: ICICI opens new front with mobile app interoperability, other banks may follow

Finance
Mumbai: State Bank of India (SBI) will follow ICICI Bank's unprecedented move to open its mobile application to use by other bank's customers using the UPI platform, opening a new front in the battle for new customers and cheap deposits in the banking sector. ICICI on Monday announced that customers of any bank can link their bank account generate a UPI ID and start sending and receiving money to any bank account, payment app or digital wallet immediately. Moreover customers will also get instant access to the entire range of ICICI Bank’s banking services. Anup Bagchi, executive director, retail banking at ICICI said the bank hopes to benefit from new customer leads and ultimately deposits in the long run by allowing other bank customers to use its application. "The NPCI's digital infras
Jim Cramer sees ‘rabid money’ for tech IPOs, says don’t chase DoorDash

Jim Cramer sees ‘rabid money’ for tech IPOs, says don’t chase DoorDash

investment
CNBC's Jim Cramer said Wednesday he believes there is "rabid money" interested in upcoming technology IPOs, but he urged younger investors not to chase after DoorDash once the third-party delivery company goes public."When people know the brand, the younger investors just say, 'You know what, get me some,'" Cramer said on "Squawk on the Street," "DoorDash is used by a lot of younger people, both in the suburbs and in the cities, so I think you're going to see incredible enthusiasm."DoorDash, which began trading Wednesday, sold shares in its initial public offering at $102 apiece, above its targeted range of $90 to $95. The stock later opened at $182 per share Wednesday, putting DoorDash's market cap at $57.8 billion.Before it opened, Cramer urged young investors to be careful about chasin
Max Life Insurance expects double-digit growth in FY21

Max Life Insurance expects double-digit growth in FY21

Finance
New Delhi: Private sector insurer Max Life Insurance has said that it anticipates double-digit growth of over 10 per cent in the current fiscal amid a gradual pick-up in business. The second half should be better than the first half and it is evident from each passing month, Max Life Insurance CEO and managing director Prashant Tripathy told. "Max life has done significantly better than the private industry as a whole and we have been growing for the past many months. For the first seven months, Max Life Insurance has registered a 9 per cent growth rate versus a contraction of 8 per cent in the same period a year ago. We have been gaining market share as a result of this," he said. For the first half, he said, the market share was 11 per cent which is the highest in the last 10 years. "...