LENDING CURBS
India's palm oil imports hit 14-month high, soyoil purchases set record
In October, India experienced a surge in palm oil imports to 866,000 metric tons. Soyoil imports reached a record high of 653,000 tons, reflecting increased demand. The overall edible oil imports rose by 13%, reaching 1.74 million tons during the festive season. This demand is driven by concerns about limited domestic supplies and El Nino-related crop damage.
NBFCs redesign lending models ahead of revolving credit curbs
Non-banking financial companies are innovating loan products to align with upcoming Reserve Bank of India guidelines. These guidelines aim to limit revolving credit facilities, prompting firms to develop term loans. Bajaj Finance has already begun launching new term loan variants, while Tata Capital is testing modified flexi-loan products. Other NBFCs are reviewing their positions on revolving credit exposure ahead of the final regulations.
Can Nifty, Sensex extend gains after rallying up to 2% last week? 4 factors to watch on Monday
Indian benchmark indices Sensex and Nifty ended the week higher, gaining up to 0.5%, even as broader markets declined amid rising crude oil prices above $117 a barrel. Investors will track oil price movements, foreign institutional investor (FII) activity, global cues and domestic market trends for direction. FIIs turned net buyers after a 10-week selling streak, lending support to sentiment.
Central Asia's biggest state makes renewed push for infrastructure & AI projects
Kazakhstan President Kassym-Jomart Tokayev outlined plans to strengthen energy security, expand infrastructure, develop artificial intelligence and improve living standards in his October 28 state-of-the-nation address.
Green financing in India rises to $82 billion, but flows mostly to established sectors: Report
The Landscape of Green Finance in India, now in its fourth edition, maps actual finance flows or disbursements across sources, instruments, sectors, and subsectors for financial years 2022-23 and 2023-24. According to the report, while green finance has increased substantially between 2016-17 and 2023-24, financial flows remain concentrated in established sectors and technologies.
NBFCs curb fresh loans in rural markets as weak monsoon raises repayment risks
India's leading non-bank lenders like Shriram Finance and Bajaj Finance are limiting new lending in drought-affected regions. The lenders are closely monitoring borrowers for early signs of repayment difficulties due to weak monsoon rainfall. Companies are adjusting loan growth expectations downward and strengthening collection efforts in impacted locations. Several states are under close scrutiny as economic pressures mount from lower incomes and agricultural yields.
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Indian banks open cheque books for ₹10,000 crore-plus in M&A funding after RBI rule change
Indian banks have recently engaged in significant M&A deals after the central bank eased financing rules. State Bank of India and other lenders are now financing up to 75% of deal values. The acquisition-financing market is estimated at nearly ₹2 lakh crore due to increased demand. Various large transactions include Crystal Crop Protection's acquisition of FMC Corporation's India business and others.
Can RBI’s six forex measures help stabilise the rupee?
The Reserve Bank of India has introduced several measures aimed at stabilizing the value of the rupee. These steps have successfully lifted the rupee's value against the dollar by approximately 150 paise. A new cash reserve requirement affects large foreign exchange derivatives, increasing hedging costs for companies. The central bank has also restricted speculative trading in rupee currency derivatives to help control the market.
US has India as an ally and a target of investigation in the same manufacturing fight
India has aligned itself with a US-led initiative aimed at mitigating global manufacturing overcapacity, joining 15 nations in this cooperative effort. This initiative raises questions about the future of India’s expanding manufacturing sectors, particularly in solar modules and steel. Meanwhile, a US investigation continues, with conclusions anticipated by March 2027, further complicating the landscape for India’s domestic manufacturing ambitions and regulatory legitimacy.
Air India's ₹10,000 crore fundraise plan draws cashflow concerns
Air India is currently looking to secure ₹10,000 crore in fresh loans for various operational needs. Some lenders are hesitant to provide credit due to uncertain cash flow visibility and risks. The Tata Group-backed airline reported a significant increase in losses over the past financial year, including foreign-exchange losses. Despite this, state-owned banks are willing to renew existing credit lines due to a good credit rating.
IRDAI pushes LIC, SBI Life to seek further cost efficiency
Insurers like Life Insurance Corp and SBI Life need to improve cost efficiencies under new regulatory guidelines. The proposals suggest lowering the expense of management limit from around 16% to 12.5% within five years. While larger insurers are compliant, they must reduce their efficiencies further. Smaller players might gain market share if they enhance their operations as well. The overall goal is to increase efficiency and value for policyholders.
US hiring appetite is healthy as economy powers ahead
The labor market in the US is poised for notable growth as nonfarm payrolls are anticipated to climb in September. Economists foresee the unemployment rate holding steady at a low 4.1%. Promising economic data highlights strong consumer spending and substantial capital investments, painting a picture of economic resilience.
IRDAI's commission reset impact; ETSA winner Progcap’s next bet
Happy Friday! IRDAI's overhaul plan could significantly impact the new-age insurance distribution industry. This and more in today’s ETtech Morning Dispatch.
Banks plan to align norms for project finance lending
Banks are developing a common framework for project finance lending. This initiative aims to curb regulatory arbitrage and operational misalignment among lenders. Discussions will involve state-run and private banks to establish common parameters. Such alignment will enhance risk mitigation and avoid divergent audit observations. Final guidelines by bank boards are expected to reduce regulatory arbitrage scope.
Semicon India eyes chip deals; AI leaders seek slowdown
The government is pushing supply chain partnerships at Semicon India 2026 to help local players. This and more in today’s ETtech Top 5.
With AI handing down verdicts, India's lenders ask who signs off on it: Finarkein CEO
Financial data moves rapidly through India's Account Aggregator ecosystem. Automated systems now process millions of data fetches each second. Technology providers transform raw data into credit judgments and risk assessments. Human underwriters' roles are shifting towards setting standards and handling complex cases.
GFF 2026: Digital finance has scaled, now trust and resilience must catch up, says RBI’s Deputy Governor Murmu
India's digital finance sector now prioritizes trust and resilience over access. Technology transforms finance, but trust remains the essential bedrock. Operational and cyber resilience are key priorities for the nation's financial infrastructure. Inclusion must extend beyond smartphones to reach all citizens. Technology distributes services, but responsibility always remains with regulated institutions.
NBFCs must use AI, strengthen underwriting as credit growth accelerates: RBI Deputy Governor Murmu
Reserve Bank of India Deputy Governor S C Murmu urged NBFCs to use AI and machine learning tools. He emphasized stronger risk management and rigorous stress testing for lenders. NBFC credit growth continues to rise, impacting the overall financial landscape. Technology adoption is transforming credit assessment and management practices. Customer protection and robust governance remain key priorities for the sector.
Rising global bond yields, FCNR-B inflows and SEBI's CAS to shape market dynamics: HDFC Securities CEO Dhiraj Relli
India is grappling with rising global bond yields and surging oil prices, which are heightening imported inflation. These economic challenges pose a threat to sustained corporate profits. Meanwhile, SEBI's auction initiative aims to bolster market integrity and enhance price discovery. Although RBI's new deposit guidelines provide some temporary relief amidst foreign exchange pressures, they don't offer a lasting solution.
Jio Financial to launch AI-powered ‘personal CFO’, membership programme
Jio Financial Services will launch an AI personal CFO and membership program with an aim to acquire customers cost-effectively through its digital network. The company is scaling lending and asset management businesses significantly.
RBI proposal to curb NBFCs' revolving credit may choke MSME funding, says industry body FISME
FISME has urged the RBI to reconsider its proposal to bar NBFCs from offering revolving credit, warning that a blanket ban could disrupt working-capital finance for MSMEs. The industry body said revolving credit helps small businesses manage cash-flow gaps, as they can draw funds when needed, pay interest only on the amount used and restore their credit limit after repayment.
Navi’s FY26 loss widens fourfold on UPI investments; eyes FY27 profitability
Navi reported a notable increase in net losses for FY26, largely attributed to its strategic investments in UPI and new market initiatives. Despite this setback, the company projects a turnaround to profitability in FY27. UPI is recognised as a vital mechanism for attracting customers, and lending remains a core source of revenue.
RBI deputy governor, J Swaminathan tells NBFCs to be fair in lending
The RBI's concerns stem from the higher-interest some finance companies charge borrowers. In recent months, the regulator had to impose lending curbs on a few finance companies, such as Navi FInserv, Arohan Financial Services and DMI Finance, due to the alleged usurious rates they charged borrowers.
Religare Finvest submits revised debt recast plan
The earlier debt restructuring plan which was put in place and was actually signed off by more than 70% of my lenders and this gives me confidence that, what we have done in the revised restructuring plan, which is more or less in line with what we had proposed earlier,” Pankaj Sharma, president and head corporate planning and strategy at Religare Finvest, told TOI.
Government may push RBI to lift lending curbs on some banks
RBI will have to come with a plan to prevent banks accumulating bad loans rather than just penalizing them.
Lending curb hits ICICI's overseas operations
Regulators in the UK and Canada have objected to locally incorporated subsidiaries of ICICI Bank lending mostly to Indian companies.
Bernanke may have to curb lending
Move needed to help limit Congress’ role in monetary policy and keep lid on inflation, feel experts. Bernanke takes hit on investments I Financial crisis I Ghosts of 1929
Oman mulls tighter lending curbs as inflation jumps
Oman's central bank is ready to tighten bank lending curbs again after inflation hit an 18-year peak of 11.1 per cent in February, Executive President Hamood Sangour al-Zadjali said on Sunday.
Saudi cbank confirms tighter bank lending curbs
Saudi Arabia's central bank has raised bank reserve requirements to 12 per cent beginning from April first week.
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