Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Ahead of the Union Budget, <keyword id="34743" type="General" weightage="50" keywordseo="rohit-arora" source="Orion">Rohit Arora</keyword>, CEO and Co-Founder of Biz2X, has suggested the government needs to come out with a specialised <keyword id="18173" type="General" weightage="100" keywordseo="sme" source="Orion">SME</keyword> <keyword id="50691" type="General" weightage="80" keywordseo="digital" source="Orion">digital</keyword> bank to cater to the funding needs of small businesses. Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> will present the last full Budget before the 2024 general elections in the Lok Sabha on February 1, wherein she is expected to announce slew of measures to boost economic growth. <br /><br /> <keyword id="176" type="General" weightage="80" keywordseo="arora" source="Orion">Arora</keyword> said that small and medium businesses perennially face credit shortage and it is time that the government should come out with a specialised bank to cater their requirements. <br /><br /> "SME digital bank can provide a bouquet of services to MSMEs, such as business CASA accounts for transaction banking, invoice and payments processing, correspondent banking, SME credit and trade finance, and other business financial services," he said. <br /><br /> Biz2X is a turnkey global SaaS platform that enables financial institutions to provide a customised online lending experience for their small and mid-size business customers. <br /><br /> Further, Arora stressed that such a bank can also include a special portfolio of revenue-linked credit instruments that will address the credit needs of MSMEs and also help in diversifying SME credit vis-a-vis the present system of collateral-based financing, which restrains the very practicality of running a small business. <br /><br /> Being completely digital, he said such banks can process quicker loan application and disbursals for SMEs, backed by advanced data analytics and technology-based decision making. <br /><br /> "The current system of portfolio mapping and underwriting is an arduous and time consuming process, involving exhaustive documentations and required multiple visits to banks. Digital banking will quicken loan processing, lower risk and scale up faster, meeting the credit needs of small businesses," he said. <br /><br /> He said many large sovereign funds, pension funds, multilateral agencies as well as large Indian private equity funds wants to invest in such an initiative, given its enormous economic potential. <br /><br /> About 6.3 crore MSMEs (Micro, Small and Medium Enterprises) provide more than 11 crore jobs in India.<br /><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/gautam-adani-plans-to-launch-at-least-five-ipos-between-2026-to-2028/slidelist/97248256.cms">Gautam Adani plans to launch at least five IPOs between 2026 to 2028</a><br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/idbi-bank-posts-60-growth-in-profit-in-third-quarter/articleshow/97251640.cms">IDBI Bank posts 60% growth in profit in third quarter</a></strong><br />

SME digital bank can provide services like business CASA accounts to MSMEs: Biz2Credit co-founder

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Britain's challenger banks are successfully "eroding" the <span>market share of the</span> country's biggest banks by offering "freebies and loyalty points."</p><p>That's according to Warren Mead, the <a href="http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/newsreleases/pages/kpmg-appoints-warren-mead-to-lead-challenger-banking-and-alternative-finance-practice.aspx">head of challenger banking and alternative finance at KPMG</a><span>. </span></p><p><span>In an interview with BBC's Today programme, Mead said that upstart lenders from retailers such as Sainsbury's and Marks and Spencer, as well as <span>small to medium enterprises (</span>SME) focused firms like Shawbrook and Aldermore, have i</span><span style="line-height: 1.5em;">ncreased their lending by 16% in the last year.</span></p><p><span style="line-height: 1.5em;">Meanwhile, Britain's biggest banks, such as Barclays, Lloyds Banking Group and the Royal Bank of Scotland, have reduced their lending by 5%.</span><span style="line-height: 1.5em;"> </span></p><p><span>"Although these banks only make up 5% of the overall banking market, and bank account switching is still low, when people do switch to these smaller banks, what they're really looking for is freebies and loyalty points</span>," said Mead, <a href="http://www.bbc.co.uk/programmes/b006qj9z">to the BBC</a>.</p><p><span>"If you're a small business, challenger banks work better for you, as you have better access to credit products like invoice financing and small business loans. In particular, the peer-to-peer market is really interesting. It's much less regulated than the banking sector and growing by about 200% a year."</span></p><p>Supermarket Sainsbury's offers customers discounts on food shopping and loyalty points in exchange for a customer signing up to its banking services or by <a href="https://www.sainsburysbank.co.uk/home-insurance/index.shtml?source=NETHMPAGHOMESPOD0001">taking out one of its loans or home insurance</a>.</p><p>Elsewhere, SME focused upstart lenders such as Aldermore and Shawbrook have become so popular that they both launched an IPO earlier this year.</p><p>Aldermore unveiled a 4% rise in total <a href="http://uk.businessinsider.com/challenger-bank-aldermore-trading-update-for-first-quarter-2015-5#ixzz3aqkUhvsj">customer deposits to £4.7 billion ($7.4 billion) in the first quarter this year, compared to the whole of 2014.</a></p><p>Deposits from small to medium enterprises (SME) also rocketed by by 10% to £1.1 billion ($1.7 billion).</p><p>Shawbrook currently lends to just over 60,000 SMEs and consumers in the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword>. <a href="http://uk.businessinsider.com/challenger-bank-shawbrook-ipo-is-launching-a-725-million-ipo-today-2015-4#ixzz3aqksX06z">Shawbrook increased customer loans by 70% to £2.3 billion ($3.6 billion) in the year to December 31, 2014, and reported a 191% surge in underlying profit before tax for that year</a>.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/game-of-thrones-stars-real-life-2015-4">Here's what 'Game of Thrones' stars look like in real life</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NzaTRldDoXZcQw9XO6NGGy8J2dbDaF1A" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Startups are crushing the big banks by using freebies and loyalty points

<br /><ul><li><strong>The central government has asked the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> to dilute its Prompt Corrective Action (<keyword id="6383105" type="UNKNOWN" weightage="20" keywordseo="pca">PCA</keyword>) framework to increase the flow of credit to small-and-medium-sized enterprises.<br /></strong></li><li><strong>The RBI is reportedly mulling a plan to allow some state-run banks to leave the PCA programme ahead of time if they demonstrate a turnaround in their <keyword id="463915" type="PERSON" weightage="20" keywordseo="non-performing-asset">non-performing asset</keyword> ratios and profitability.<br /></strong></li><li><strong>The <keyword id="6358156" type="ORGANIZATION" weightage="20" keywordseo="central-bank">central bank</keyword> is also expected to relax certain requirements imposed on all banks with regards to secured and unsecured loans to SMEs.</strong></li></ul>The current <a href="https://www.businessinsider.in/the-spat-between-indias-central-bank-and-the-government-gets-more-heated-as-the-finance-minister-blames-it-for-not-doing-enough-to-prevent-the-countrys-bad-loan-problem/articleshow/66442846.cms">clash</a> between India’s central bank and the BJP-ruled government has roiled markets and stoked fears among investors. Thankfully, the two parties may reach a compromise as the board of the Reserve Bank of India (RBI) prepares to sit down on 19 November.<br /><br />In the wake of the recent IL&amp;FS crisis and the drying up of funds at the nation’s non-banking financial companies, the central government has asked the RBI <a href="https://www.businessinsider.in/indias-government-wants-to-dilute-an-important-corrective-programme-for-the-nations-struggling-lenders-and-the-central-bank-is-having-none-of-it/articleshow/66411552.cms">to dilute its Prompt Corrective Action (PCA) framework</a> so as to increase the flow of credit to small-and-medium-sized enterprises (SME). This framework is aimed at putting certain lending and operational restrictions on banks with high rates of non-performing assets.<br /><br />After initially refusing to loosen restrictions under the framework, it appears that the RBI might be open to meeting the central government halfway in this regard. <br /><br />BI is reportedly mulling a plan to allow some state-run banks to leave the PCA programme ahead of time in the event that they demonstrate a turnaround in their non-performing asset ratios and profitability, sources told <a href="https://indianexpress.com/article/india/restrictions-on-banks-rbi-and-govt-work-to-narrow-their-gap-5445145/">the Indian Express</a>. As per the RBI’s current norms, struggling banks are only taken off the watchlist after reporting a net profit for two consecutive years. <br /><br />The central government has not presented its proposal as a dilution, however. It has maintained that is asking the RBI to bring the PCA programme in line with the intervention programmes of global central banks and the international <keyword id="142572" type="PERSON" weightage="20" keywordseo="Basel-III">Basel III</keyword> risk framework. It has also argued that the PCA framework needs to be revised because a restriction on lending, a core operation, prevents a bank from increasing its profits. <br /><br />Around 11 of India’s 21 state-run banks are on the PCA watchlist, which places limits on the extension of loans, branch expansion and issue of dividends. As a result of restrictions on these banks, SMEs have suffered from <a href="https://www.businessinsider.in/indias-small-businesses-are-suffering-from-a-shortage-of-credit-options/articleshow/63683278.cms">a slowdown in financing.</a> <br /><br />In addition, the central government is also pushing for the RBI to reduce the capital-to-risk-weighted assets ratio, a key indicator of financial stability, that it imposes on the nation’s banks from 9% to the 8% prescribed by the Basel III framework. The move could give state-run banks an additional ₹550 billion of funds for lending purposes, Anil Gupta, the head of credit ratings agency ICRA, <a href="https://www.bloombergquint.com/business/government-pushing-to-relax-capital-requirement-norms-for-banks#gs.IM5s1ns">told BloombergQuint</a>. <br /><br />Finally, the RBI is also expected to relax certain requirements imposed on all banks with regards to secured and unsecured loans to SMEs. In line with international standards, India’s central bank could lower the risk weightage, which influences the amount of capital set aside, for SME loans to 75% from a current level of 150%. SME loans are considered more risky than loans to larger companies and hence require higher risk provisioning. <br /><br />While the RBI could accede the government’s requests keeping in view the dire <keyword id="6355375" type="DEFINITION" weightage="20" keywordseo="Liquidity">liquidity</keyword> situation in the short term, it will be wary of precipitating a further build-up in bad loans. <br /><br />The current risk requirements are a preventive measure that were implemented in response to the burgeoning bad loan problem in India’s banking sector. It’s a classic case of the conflict between a short term boost to the economy and long term stability. Given that we’re headed for general elections, it isn’t difficult to ascertain which one will win out.<br /><br />SEE ALSO:<br /><br /><br /><a href="https://www.businessinsider.in/the-spat-between-indias-central-bank-and-the-government-gets-more-heated-as-the-finance-minister-blames-it-for-not-doing-enough-to-prevent-the-countrys-bad-loan-problem/articleshow/66442846.cms">The spat between India’s central bank and the government gets more heated as the finance minister blames the RBI for not doing enough to prevent the country’s bad loan problem</a><br /><br /><a href="https://www.businessinsider.in/indias-government-wants-to-dilute-an-important-corrective-programme-for-the-nations-struggling-lenders-and-the-central-bank-is-having-none-of-it/articleshow/66411552.cms">India’s government wants to dilute an important corrective programme for the nation’s struggling lenders — and the central bank is having none of it</a><br /><br /><a href="https://www.businessinsider.in/the-reserve-bank-of-india-is-trying-to-prevent-a-liquidity-crisis-at-banks-by-relaxing-an-important-risk-requirement/articleshow/65978953.cms">The Reserve Bank of India is trying to prevent a liquidity crisis at banks by relaxing an important risk requirement</a><br />

An end to the spat between the RBI and the government could be in sight as the board of the central bank prepares to meet next week

New Delhi, Nov 29 () Liquidity pressures faced by the non-banking financial sector following the IL&amp;FS failure are likely to continue though funding costs have come off the peak, Fitch Ratings said on Friday.
<p> "We view wholesale and housing finance companies (HFCs) as more vulnerable -- given their higher leverage, weaker asset-and-liability maturity (ALM) profiles and higher concentration risks. Large retail finance companies with well-managed ALM profiles should continue to access bank and capital markets funding. Further, funding diversification in the offshore markets by larger issuers would benefit their funding profiles," it said in its outlook for emerging market finance and leasing companies.
</p><p> Indian finance and leasing companies are likely to grow at a slower pace in 2020 than in prior years, amid weaker economic growth and liquidity constraints, it said.
</p><p> Fitch said its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure. "Liquidity pressures faced by the sector following the IL&amp;FS failure are likely to continue, though funding costs have come off the peak."
</p><p> Increasing competition to offset lower growth may weigh on profitability and test risk appetite.
</p><p> "This is likely to have an impact on loan growth, including business loans and commercial vehicle (CV) loans. The slowdown in automotive sales has had a particular impact on auto-loan growth and is likely to continue, while the acute slowdown in real estate may have a prolonged impact on construction financing as new disbursements have halted," it said.
</p><p> Companies focused on small-ticket consumer loans continue to grow above the industry rate, owing to the lower credit penetration and higher exposure to rural sectors where credit competition with banks is lower.
</p><p> Certain asset classes (new CV loans, metro and tier-I housing loans, and large-ticket loans against property) could see weakening margins due to rising competition from banks, while funding costs are likely to stay high as market rates should remain volatile -- given the liquidity strain, Fitch said.
</p><p> HFCs with thinner margins are more vulnerable to losses if asset-quality pressures increase due to rising real estate delinquencies. The economic slowdown, coupled with deterioration in corporate and SME (small and medium enterprise) earnings, will affect asset quality for CV loans and loan against properties.
</p><p> "The weaker growth outlook should ease pressure on capitalisation. However, weakening asset quality for companies exposed to the construction sector may pressure capitalisation. Access to new capital is likely to be challenging as the market appetite for equity investments in these companies remains subdued," it said.
</p> Indian finance and leasing companies cater to a diversified retail market, including consumers and SME segments, which may have a moderate impact on asset quality. However, granular portfolios, high-yield profiles and matched asset tenors provide an adequate buffer against system-wide liquidity and asset-quality shocks, it added.   ANZ HRS

Fitch says liquidity pressures faced by non-banking financial sector to continue

Mumbai, May 4 () Small Industries Development Bank of India (Sidbi) on Monday said it will launch a digital platform that will educate stakeholders in the small and medium enterprises (SME) ecosystem and have information on coronavirus-related initiatives for the sector.<p> The platform, 'India SME Services Platform', designed by Sidbi, will give micro, small and medium enterprises (MSMEs) information about starting operations, getting finance or credit enhancement and other support services.</p><p> The government can also monitor actions on policies, schemes and programmes for the sector.</p><p> Even the regulators can tap macroeconomic trends, compliances, risk management and systemic aspects through the platform.</p><p> "It shall have all MSMEs, stakeholders of the MSME ecosystem, financiers, corporates, government, regulators, employees and associations converging on an interactive platform. This will be all at one place and one place for all kinds of initiative," Sidbi Chairman and Managing Director Mohammad Mustafa said in a release.</p><p> The platform will have a webpage encompassing a dashboard of all schemes being implemented by the central government, state governments, banks and industry associations.</p><p> It will give financiers an opportunity to look for marketplace, documentation support and loan management.</p> Even industry associations can avail of window for insights and analytics, partnerships and directory, the release said.  HV  HRS

Sidbi to launch digital platform for SMEs

<br /><ul><li><strong>The economic distress from the recent <keyword id="48088" type="COMPANY" weightage="20" keywordseo="floods">floods</keyword> in <keyword id="28504" type="LOCATION" weightage="20" keywordseo="Kerala">Kerala</keyword> is mounting. Total losses have been pegged at ₹210 billion.<br /></strong></li><li><strong>A recent report by India Ratings predicts that two-Kerala based banks, <keyword id="6356495" type="UNKNOWN" weightage="20" keywordseo="federal-bank">Federal Bank</keyword> and South India Bank, could see a 20-25% surge in their <keyword id="142154" type="PERSON" weightage="20" keywordseo="bad-loans">bad loans</keyword> as a result of the floods.<br /></strong></li><li><strong>Most of the banks in the region focus their lending on the two sectors that have been adversely impacted by the floods - SMEs and <keyword id="6355165" type="UNKNOWN" weightage="20" keywordseo="agriculture">agriculture</keyword>.<br /></strong></li></ul>The economic distress from the recent floods in Kerala is mounting. Total losses have been pegged at ₹210 billion. The state’s GDP for the current financial year is expected to fall by 1 percentage point. Insurers are readying a payout of ₹13 billion for motor and property claims alone. The national production of rubber and coffee is also expected to take a huge hit. <br /><br />And now, the balance sheets and financial strength of banks in the region are predicted to deteriorate significantly. Around five banks, including Federal Bank and <keyword id="125585" type="COMPANY" weightage="20" keywordseo="South-Indian-Bank">South Indian Bank</keyword>, are based in Kerala with a quarter of their loan book concentrated on the state. Infact, a recent report by India Ratings, predicts that Federal and South India could see a <a href="https://www.indiaratings.co.in/PressRelease?pressReleaseID=33662&amp;title=Market-Wire%3A-Lenders-with-Exposure-to-Kerala-Brace-for-a-Jolt-Amid-Floods">20-25% surge</a> in their bad loans as a result of the floods. Even microfinance institutions will see their operations affected owing to defaults. <br /><br />Last week, the CEO of Federal Bank, Shyam Srinivasan, said that the bank’s non-performing loans could rise by <a href="https://www.business-standard.com/article/markets/federal-bank-expects-bad-loans-from-kerala-to-go-up-20-30-says-md-ceo-118082200060_1.html">as much as 30%</a> within the next few quarters owing to its high level of exposure to the rubber and tourism industries. <br /><br />Most of the banks in the region focus their lending on the two sectors that have been adversely impacted by the floods - small and medium-sized enterprises (SMEs) and agriculture. While agricultural output in Kerala will most definitely take a hit in the near term, even small businesses will suffer due to the loss of inventory, property damage and irregularity in cash flows. <br /><br />This in turn, will inevitably affect the ability of farmers, agricultural collectives and small business owners to pay back their loans. To soften the blow to creditors in the agricultural sector, the government has allowed a one-year grace period for interest and five-year grace period for principal payments on these loans. So banks will not have to immediately recognise these accounts as stressed. <br /><br />In the short term, banks could see a windfall in deposits as a result of a spike in remittances to the state. The floods are expected to unleash a wave of payments from Indian diaspora to their families. The absolute value of remittances will also be given a boost due to the weak rupee. <br />

Kerala floods could lead to a surge in bad loans at India’s regional banks

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI6133YYH&amp;SMLS=1&amp;RW=1440&amp;RH=720#/SearchResult&amp;VBID=2C0FCI6133YYH&amp;SMLS=1&amp;RW=1440&amp;RH=720&amp;POPUPPN=41&amp;POPUPIID=2C0FQEEULQN7">REUTERS/Stringer</a></span></p><p class="caption">A £1.5 billion 'black hole' was discovered in the Co-op Bank's balance sheet.</p></div><p></p></div></div>The Co-operative is still struggling to recover from the £1.5 billion balance sheet "black hole" that was discovered in 2013 which almost sank the bank. </p><p>Losses in 2015 ballooned to £610.6 million, <a href="http://www.co-operativebank.co.uk/assets/pdf/bank/investorrelations/2015-Annual-Report-and-Accounts.pdf">according to the bank's annual report</a>, from £264 million in the prior year. The jump in losses is due to: a reduction of interest income; losses on asset sales of £121.4 million; a jump in conduct and legal costs of £92.5 million to £193.7 million; and restructure costs of £224.2 million.</p><p>Co-op Bank almost went to the wall in 2013 and 2014 after a £1.5 billion "black hole" was discovered in its balance sheet from losses on real estate loans. <a href="http://www.telegraph.co.uk/news/uknews/law-and-order/10455131/Former-chairman-of-the-Co-op-bank-uses-crystal-meth-and-crack-cocaine.html">A scandal involving alleged drug taking by the bank's former chairman uncovered in late 2013</a> only worsened the situation. 60,000 customers left the bank in 2014, <a href="https://next.ft.com/content/5ebc4643-731d-35fb-9fae-d09791b2fd0c">according to the Financial Times</a>.</p><p>Bondholders eventually took control of the group, pushing the Co-operative Group, the bank's longtime owner, to become a minority shareholder. The bank has been trying to repair its balance sheet ever since by selling off all "non-core" businesses and just focusing on retail banking and SME (small and medium enterprise) services. </p><p>While progress has been made, chairman Dennis Holt says in the annual report the Co-op Bank is set for a pre-tax loss both this year and next. He adds that "we continue to feel the impact of macroeconomic headwinds and some of the legacy conduct issues which, in common with the rest of the industry, are taking longer to work through than originally anticipated."</p><p>But Holt says in the annual report:</p><p style="padding-left: 30px;">However, we expect both the level of investment and the impact of historic issues to materially reduce in subsequent years and it is becoming evident that there is a viable Core Bank with a solid franchise emerging which we expect to return to operating profitability before the end of 2017.</p><p>CEO Niall Brooker's pay package totalled £3.8 million last year, up from £3.08 million in 2014. CFO John Baines' total take home rose from £390,000 in 2014 to £932,000.</p><p>The Co-operative Bank has four million retail customers and 100,000 SME customers.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/james-altucher-credit-card-debt-banks-collection-agencies-money-2016-3">James Altucher makes an argument for not paying back your credit card debt</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="BkcXMxMjE6Bup_Af4Q_V_Mw61FafoNfk" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

The Co-operative Bank's losses more than doubled to &#163;610 million last year and there's more trouble ahead

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Shawbrook, <a href="http://uk.businessinsider.com/shawbrook-ipo-follows-aldermores-ipo-2015-3#ixzz3W2Emy4ux">the challenger bank chaired by the former RBS CEO Sir George Mathewson</a>, unveiled a 4% rise in t<span style="line-height: 1.5em;">otal customer deposits to £4.7 billion <span>($7.4 billion) </span>in the first quarter this year, compared to the same period last year.</span></p><p>The upstart lender said in a trading update, <a href="http://uk.businessinsider.com/challenger-bank-shawbrook-ipo-is-launching-a-725-million-ipo-today-2015-4">which is the first since it launched its IPO on April 1,</a> that deposits from small to medium enterprises (SME) also rocketed by by 10% to £1.1 billion ($1.7 billion).</p><p>"It has been an exciting and busy quarter for the Group and our achievements to date give us confidence as we look forward to the rest of this year and beyond," said P<a href="http://www.investegate.co.uk/aldermore-group-plc--ald-/rns/q1-trading-update/201505140700421247N/">hillip Monks, CEO at Aldermore in a statement</a>. <span style="line-height: 1.5em;">"We remain on track to deliver our targeted £1.4 billion of growth in net lending for 2015 which equates to an expected full year growth rate of around 30%."</span></p><p>"Double digit growth in SME deposits provides continued funding diversification as lending remains primarily funded by our dynamic online savings franchise."</p><p>Other highlights include:</p><ul><li><span style="line-height: 1.5em;">Net lending to customers up by 7% in Q1 to £5.1 billion.</span></li><li><span style="color: #222222; line-height: 1.5em;">Organic loan origination of £568 million, up by 9% on Q1 2014.</span></li></ul>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/chocolate-kinder-surprise-eggs-toys-2015-4">We got our hands on 'Kinder Surprise Eggs' - the global candy favorite that's still illegal in the US</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="JzcnlidDpB5a1Xs-qlzglXWaGqCUSWQA" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Challenger bank Aldermore revealed that customer deposits rocketed

<ul><li><keyword id="6368751" type="UNKNOWN" weightage="20" keywordseo="banks">Banks</keyword> are evaluating their loan portfolio with regard to customers who availed moratorium of interest repayment during the first instalment period of March 1 to May 31.</li><li>Fresh extension on moratorium will be offered only to certain clients with good track record and healthy business operations, source told IANS.</li><li>As part of COVID-19 relief package, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> on Friday extended the moratorium on term loans and interest on working capital loans by three months till August 31. </li></ul>Banks may not extend <keyword id="9275958" type="UNKNOWN" weightage="20" keywordseo="Second-moratorium">second moratorium</keyword> to all their customers amid gradual resumption in business activity and rising asset quality risk emerging from longer duration loan forbearance.<br /><br />Sources said that banks are evaluating their loan portfolio with regard to customers who availed moratorium of interest repayment during the first instalment period of March 1 to May 31. Fresh extension on moratorium will be offered only to certain clients with good track record and healthy business operations.<br /><br />"Unlike the first round, banks will now be extending the moratorium selectively (1m-3m) basis to new/old customers, while good customers too will be reluctant, given the higher interest cost and some pick-up in business activity," said Emkay Global in a report prepared after talking to several bankers on the fresh announcements by the Reserve Bank of India (RBI).<br /><br />As part of COVID-19 relief package, the RBI on Friday extended the moratorium on term loans and interest on working capital loans by three months till August 31. Also, as a relief for working capital borrowers, it allowed conversion of accumulated interest on these loans to Funded-Interest Term Loan (as typically happens under restructuring) instead of one-shot payment at the end of the moratorium, but still payable before March 31, 2021.<br /><br />Bankers are indicating that instead of the 3 month moratorium, forbearance on asset classification or selective restructuring (mainly for SME) would have been a better solution, with business activities resuming gradually. Longer moratoriums are acceptable for long-tenure loans like mortgage, but not for short-tenure loans, and also disrupts credit discipline even for relatively good customers in the long run, the brokerage said in its report on the basis of comments from bankers.<br /><br />It is now expected that that salaried class, which was relatively reluctant in the first round, may opt for a moratorium in the second round due to rising job losses/pay cuts.<br /><br />Moratorium behaviour from corporates was mixed in the first round, with even good rated corporates availing moratorium, but may not take the extension.<br /><br />Collection from micro finance segment borrowers still remains slow due to restriction in conducting centre meetings and thus, banks may selectively extend a short moratorium on need basis in specific areas, the brokerage said.<br />

Banks could extend RBI's second moratorium 'selectively'

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Aldermore, t<a href="http://uk.businessinsider.com/aldermore-challenger-bank-ipo-march-2015-2015-2#ixzz3TxzzhRhz">he challenger bank that is ruffling Britain's biggest banks' feathers</a>, revealed that it will dole out £1,000 worth of shares to each employee when it launches its <a href="http://uk.businessinsider.com/aldermore-challenger-bank-ipo-march-2015-2015-2#ixzz3Ty0TESGP">IPO this month</a>.</p><p>The bank said in a regulatory statement that the share windfall will be a reward after the upstart lender, which was only founded in 2009, <a href="http://www.investegate.co.uk/aldermore-group-plc--ald-/rns/announcement-of-offer-price/201503100703339715G/">makes it onto the London stock market with a market capitalisation of £651 million</a> ($983 million).</p><p><span>"I would also like to personally thank all of my colleagues for their hard work and commitment," said <span>P</span><span>hillip Monks, CEO at Aldermore in a regulatory statement.</span> "Something all the team shares is an enormous sense of pride in how we serve our growing number of customers and the achievements we have made so far. </span></p><p>"To demonstrate our gratitude, and to ensure all of our team can participate in our future success, I'm delighted to announce that we will be awarding <a href="http://www.investegate.co.uk/aldermore-group-plc--ald-/rns/announcement-of-offer-price/201503100703339715G/">Aldermore shares of up to £1,000 in value to each of our employees.</a>"</p><p>Aldermore confirmed in a regulatory statement that it would release 34.8 % of its equity to the public, which translate as<span style="line-height: 1.5em;"> 117,934,783 ordinary shares at 192 pence per share. Currently, this would value Aldermore at </span><span style="line-height: 1.5em;">£651 million.</span></p><p><span style="line-height: 1.5em;">"This is an exciting moment for Aldermore. The success of our IPO is testament to the strength of our story as a <a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2">legacy-free bank</a> focused on providing banking services to SMEs and homeowners," said </span><span style="line-height: 1.5em;">Monks in a statement.</span></p><p>"It's also a clear demonstration that the investment community shares our confidence in our ability to continue delivering profitable and sustainable growth for our investors.</p><p>"We believe that becoming a listed company will further support our development by allowing us to provide flexible and straightforward products and customer-focused banking services to British SMEs and homeowners."</p><p>In 2014, <a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2">small and medium enterprise (SME) deposits rocketed by 97% to £1 billion in its online deposit franchise</a>, while regular customer online deposits jumped by 29% to £4.5 billion. It now has 50,000 SME customers in total to date.</p><p>Lending to SMEs also surged by a third to £2.2bn in 2014 while <a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2">net loans to customers jumped 42% to £4.8bn</a>, compared to the previous year.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/largest-ice-glacier-calving-filmed-2015-1">This Video Of The Largest Breakage Of Ice From A Glacier Ever Filmed Is Absolutely Frightening</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NqbHJucjpzcqR3obKs3FqeMQRi8yolxr" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Challenger bank Aldermore employees get shares windfall on &#163;651 million IPO 

On NOV 8, when <keyword id="3315394" type="UNKNOWN" weightage="20" keywordseo="demonetisation">demonetisation</keyword> was announced, it proved to be a boon for digital payment and mobile wallet companies, as the cash ban served as a bonanza for them. Now, Prime Minister Narendra Modi's New Year eve speech has opened up opportunities for digital lending players, including <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> in the space.<br />
<br /> PM Modi had announced the inclusion of non-banking financial companies (<keyword id="6354598" type="ORGANIZATION" weightage="20" keywordseo="NBFCs">NBFCs</keyword>) in the credit guarantee scheme for small, medium and micro enterprises (SMEs) and also extended the scheme for loans up to Rs 2 crore. The inclusion will help new-age NBFCs such as Capital Float and Lendingkart reach out to more borrowers.<br />
<br />
"This is the first time that the government has opened the credit gua rantee scheme for NBFCs, and this is abig move. NBFCs are reaching (out) to SMEs in every nook and corner and covering us under the scheme will help in reaching out to more borrowers. So far, NBFCs had to take the entire risk only by themselves, and some were still conservative in lending to borrowers who may not have been eligible under conven tional norms," Harshvardhan Lunia, cofounder of Lendingkart, which has so far lent to 7,500 SMEs, told ET.<br />
<br />
The current credit guarantee scheme includes term loans or working capital facility up to Rs 100 lakh per SME borrower, extended without any collateral security or third-party guarantee. It was so far applicable only to scheduled commercial banks and some regional rural banks.<br />
<br />
The guarantee cover available under the scheme is to the extent of a maximum 85% of the sanctioned amount.

PM Modi’s New Year eve speech proved to be a boon for players and startups in digital lending, here’s how

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2"></a></div><p></p></div></div>Aldermore, the challenger bank that is ruffling Britain's biggest banks' feathers, <a href="http://www.investors.aldermore.co.uk/sites/default/files/attachments/pdf/aldermore-intention-to-float-on-the-london-stock-exchange-24feb2015.pdf">plans to launch an IPO in March this year</a>.</p><p>The <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> banking newcomer, which was only founded in 2009, <a href="http://www.investors.aldermore.co.uk/sites/default/files/attachments/pdf/aldermore-intention-to-float-on-the-london-stock-exchange-24feb2015.pdf">confirmed in a statement that it plans to raise £75 million from the stock market sale</a>. The IPO is worth between £600 million to £650 million.</p><p><span>Credit Suisse and Deutsche Bank are leading the London Stock Exchange listing. </span></p><p>After initially shelving plans to list in October 2014, citing a "<a href="http://www.investegate.co.uk/aldermore-bank/rns/announcement-re--ipo/201410151015023659U/">deterioration of the global equity markets</a>", Aldermore made it clear that the time is, finally, right.</p><p>"Now is the right time for Aldermore to seek a listing on the London Stock Exchange," said Phillip Monks, CEO at <a href="http://www.investors.aldermore.co.uk/sites/default/files/attachments/pdf/aldermore-intention-to-float-on-the-london-stock-exchange-24feb2015.pdf">Aldermore in the group's regulatory statement</a>. <span style="line-height: 1.5em;">"As our strong performance in 2014 highlights, we have consistently delivered on our ambitious targets and we </span><span style="line-height: 1.5em;">have proven our ability to grow organically and profitably. In 2014, underlying profit before tax more </span><span style="line-height: 1.5em;">than doubled, driven by strong balance sheet growth, with net lending to SMEs and homeowners </span><span style="line-height: 1.5em;">higher than ever before."</span></p><p>On Monday, the FTSE 100 opened at a record level, 6,939.89 just minutes after the open. Today, it is hovering around 6907.00. This is still up from the previous day's close of 6904.11.</p><p>"The index remains in 2.5-month uptrend and above the 1-year resistance level 6900," said <span>Mike van Dulken, Head of Research at Accendo Markets, in a clients note.</span> "The watch levels are 6960 for the bullish and  Bullish 6880 for the bearish."</p><p>On 18 February, Aldermore's CEO Monks told Business Insider about <a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2">how the upstart lender is capitalising on Britons' hatred for the UK's biggest banks</a>.</p><p>In 2014,<a href="http://uk.businessinsider.com/aldermore-ipo-and-results-2014-2015-2"> small and medium enterprise (SME) deposits rocketed by 97% to £1 billion in its online deposit franchise</a>, while regular customer online deposits jumped by 29% to £4.5 billion. It now has 50,000 SME customers in total to date.</p><p>Lending to SMEs also surged by a third to £2.2bn in 2014 while <span>net loans to customers jumped 42% to £4.8bn, compared to the previous year. </span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/largest-ice-glacier-calving-filmed-2015-1">This Video Of The Largest Breakage Of Ice From A Glacier Ever Filmed Is Absolutely Frightening</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NqbHJucjpzcqR3obKs3FqeMQRi8yolxr" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Challenger bank Aldermore will launch an IPO in March

New Delhi, Jan 17 () India's gold loan market is expected to reach Rs 4,617 billion by 2022 at a five-year compounded annual growth rate of 13.4 per cent, a KPMG report said.
<p> The 2018-19 fiscal year saw gold loan companies aggressively expanding their branch network across the northern and eastern states in the country, it said.
</p><p> "Moving forward, these companies are expected to focus on optimising their asset utilisation and leveraging their existing branch infrastructure to maximize the branch-level AUM and customer outreach," KPMG India said in the report 'Return of gold financiers in India's organised lending market'.
</p><p> The emergency of the online and digital models in the gold loan space by NBFCs and new-age fintech players that offer gold loans at the customers' doorstep have opened up an untapped market among digitally enabled customers, it said.
</p><p> The industry incumbents are expected to "invest more" in developing "digital onboarding capabilities" that are critical to capturing this segment of tech-savy customers, it added.
</p><p> The organised gold loan market comprising of banks, Non-Banking Financial Company (NBFCs) and Nidhi companies contribute to nearly 35 per cent of Indian gold loan market.
</p><p> According to the report, today's gold loan companies are competing not just against other players but against financial services providers too.
</p><p> While the size of the unorganised gold loan sector, which is estimated to be three times the size of the organised sector, may imply significant growth potential and it is actively being encroached upon by financial services players that offer unsecured loans, it said.
</p><p> In the last few years, the major gold loan players have achieved geographical saturation and are now exploring other financial products such as microfinance and SME loans to maintain growth.
</p><p> The report further said that customers who previously had to pledge gold to fund their emergency cash shortages, consumer durable purchases and holidays now have a risk-free avenue to source funds without providing any collateral.
</p><p> "Lenders today are partnering with fintech companies to leverage the advancement in technology for developing enhanced underwriting capabilities that are agnostic to the availability of customer credit history," it said.
</p><p> With the arrival of more robust technological platforms and underwriting systems, the utilisation of unsecured loan products such as personal loans, credit card loans and consumer durable loans has been growing in popularity, it added.
</p><p> Noting that the key challenges faced by gold loan market are gold price volatility and liquidity stress in NBFCs, the KPMG report said as 2019 saw prices of the precious metal reaching an all-time high, gold loan companies will be "more conservative" in their approach towards disbursing loans until prices stabilise.
</p><p> These companies will continue to promote low loan to value (LTV) ration and low-tenure loans so that the risk of volatility in gold prices is reduced and prevent an LTV breach, it said.
</p><p> Although global gold prices are forecast to reduce over the long term, the gold loan market is expected to demonstrate high growth potential as banks are becoming more selective and stringent in credit disbursement. Unlocking new geographies, such as the northeast, will also add to the growth story, it added.
</p><p> According to the report, gold loan NBFCs will continue to be frontrunners in this journey equipped with quicker decision-making, faster adoption and capturing new markets will give them a natural advantage compared to banks.
</p> KPMG in India, however, sees banks tackling this by operating gold loan-specific branches and channels to give the NBFCs a strong fight, the report added.  LUX  LUX MR
MR

You Searched For "sme bank loans" and got 13 results

SME digital bank can provide services like business CASA accounts to MSMEs: Biz2Credit co-founder

PTI

Startups are crushing the big banks by using freebies and loyalty points

Lianna Brinded

An end to the spat between the RBI and the government could be in sight as the board of the central bank prepares to meet next week

Dilsher Dhillon

Fitch says liquidity pressures faced by non-banking financial sector to continue

PTI

Sidbi to launch digital platform for SMEs

PTI

Kerala floods could lead to a surge in bad loans at India’s regional banks

Dilsher Dhillon

The Co-operative Bank's losses more than doubled to £610 million last year and there's more trouble ahead

Oscar Williams-Grut

Challenger bank Aldermore revealed that customer deposits rocketed

Lianna Brinded

Banks could extend RBI's second moratorium 'selectively'

IANS

Challenger bank Aldermore employees get shares windfall on £651 million IPO

Lianna Brinded

PM Modi’s New Year eve speech proved to be a boon for players and startups in digital lending, here’s how

BI India Bureau

Challenger bank Aldermore will launch an IPO in March

Lianna Brinded

India's gold loan mkt to touch Rs 4,617bn by 2022

PTI

Popular Keywords

Buying Guides

You Searched For "sme bank loans" and got 13 results

SME digital bank can provide services like business CASA accounts to MSMEs: Biz2Credit co-founder

PTI

Startups are crushing the big banks by using freebies and loyalty points

Lianna Brinded

An end to the spat between the RBI and the government could be in sight as the board of the central bank prepares to meet next week

Dilsher Dhillon

Fitch says liquidity pressures faced by non-banking financial sector to continue

PTI

Sidbi to launch digital platform for SMEs

PTI

Kerala floods could lead to a surge in bad loans at India’s regional banks

Dilsher Dhillon

The Co-operative Bank's losses more than doubled to &#163;610 million last year and there's more trouble ahead

Oscar Williams-Grut

Challenger bank Aldermore revealed that customer deposits rocketed

Lianna Brinded

Banks could extend RBI's second moratorium 'selectively'

IANS

Challenger bank Aldermore employees get shares windfall on &#163;651 million IPO

Lianna Brinded

PM Modi’s New Year eve speech proved to be a boon for players and startups in digital lending, here’s how

BI India Bureau

Challenger bank Aldermore will launch an IPO in March

Lianna Brinded

India's gold loan mkt to touch Rs 4,617bn by 2022

PTI

Popular Keywords

Buying Guides

The Co-operative Bank's losses more than doubled to £610 million last year and there's more trouble ahead

Challenger bank Aldermore employees get shares windfall on £651 million IPO