Banking Archives - Ecostar Business

IDFC FIRST Bank

February 21, 2025126 Views0

With a low NPA and high CASA deposit combination, IDFC First Bank is one of the most efficient banks in the country. Yet a periodic slip in its bottom line makes its equities cheaper. But the youngest in the industry has many strengths - one of the friendliest for customers in the banking space. IDFC FIRST Bank says it is building a world-class bank in India, guided by four core principles: ethical banking, customer-friendly banking, digital banking, and social good banking. The bank was created out merger of infrastructure financing giant IDFC Bank and retail financing specialist Capital First in December 2018. Earlier, IDFC Bank launched commercial banking operations in 2016. The offers products and services across all segments including retail, MSME, rural, startups, corporate ban...

BankingNews

RBI raises collateral-free agri loan limit to ₹2 Lakh

Editor

December 18, 2024273 Views0

ARJAVA MEDIA: The decision will enhance credit accessibility for small and marginal farmers, who constitute over 86% of the sector. The Reserve Bank of India (RBI) instructed commercial banks to support the agricultural sector and address the farmers’ rising input costs by raising the limit of collateral-free agricultural loans, including loans for allied activities to ₹2 lakh from the existing limit of ₹1.6 lakh per borrower. This decision acknowledges the impact of inflation and the increasing cost of agricultural inputs on farmers. It aims to provide enhanced financial access to farmers, ensuring they have sufficient resources to meet their operational and developmental needs without the burden of providing collateral.The instructions, which include waiver of collateral secu...

Banking

PSBs’ bad loans declined to 3.12% from 14.58% in Mar ‘18

Editor

December 14, 2024228 Views0

ARJAVA MEDIA Public sector banks are now more efficient and stronger with lower NPA and better capital adequacy ratios. The talks of PSBs’ weakness hold no sense. The fraudulent loan restructuring left a huge blow on the commercial banks’ asset qualities between 2005 and 2014. The restructuring policy of the UPA regime covered up the volume of defaults and defaulters celebrated their time with bigger loans at the cost of the bank’s financial strength. The Reserve Bank of India announced the Asset Quality Review (AQR) in 2015 after the Modi government came to power, which saw NPA cats jumping out of sacks. The AQR aimed to address the issue of stress in the banking system. After the withdrawal of the special treatment of restructured loans, stressed accounts were reclass...

Banking

Loan write-offs are not loan waivers

Editor

December 12, 2024216 Views0

In the first half of the current financial year public sector banks have written off loans worth Rs 42,000 crore, which were not loan waivers, Minister of State for Finance Pankaj Chaudhary said in Rajya Sabha while presenting details of the so called write-off. These loan write-offs are not loan waivers though many politicians and ill-informed media men misinterpret them as loan waivers. In the first half of the current financial year public sector banks have written off loans worth Rs 42,000 crore, which were not loan waivers, Minister of State for Finance Pankaj Chaudhary said in Rajya Sabha while presenting details of the so called write-off. These loan write-offs are not loan waivers though many politicians and ill-informed media men misinterpret them as loan waiv...

Banking

Loan write-off : A political misinterpretation

Editor

December 12, 2024254 Views0

SRIPARVATHI / ARJAVA MEDIA No lender can write off any delinquent borrower’s loans because there is no regulatory law or government order for banks to forget any loan. “Write off’ is only a tax accounting term, not a pardon to the defaulters. It is not waiver of any loan. A social media post said: "43 banks settled Ambani’s Rs 49,000 debt for Rs 455 crore. The rest was written off. Such posts are either completely untrue or shared out of one’s ignorance. Many people, including the so-called ‘erudite’ politicians, still seem to have misunderstood the word, write-off – or go by the dictionary meaning of the phrase. The government cannot write off the loans commercial banks disburse. If the government asks the banks to write off anyone’s loans, the Parliament has to appro...