The Reserve Bank of India (RBI) on Friday slashed its key policy rate for a second time this year in an emergency meeting to counter the economic fallout from an ongoing nationwide lockdown to contain the spread of the coronavirus.
Banks will have to reduce their loan approval rate to 61% from the current 70% to maintain the bad loan ratio witnessed in 2009, a year after the global financial crisis, credit bureau Experian said in a webinar.
The Reserve Bank of India (RBI) has come to the rescue of not only corporate borrowers bearing the brunt of coronavirus lockdown but also individuals facing income disruptions due to the nationwide shutdown after the spread of novel coronavirus swept the entire world. A slew of measures from reduction in the repo rate and cash reserve ratio to three-month moratorium on term and credit card loans are expected to provide immediate relief to the borrowers.
Reserve Bank of India (RBI) Governor Shaktikanta Das's announcement of rate cuts, forbearance on loans and liquidity easing measures were welcomed by analysts who said the economy requires stimuli in the present circumstances. Some of them also said that the RBI may have to deepen the rate cut if the COVID-19 crisis prolongs.
In an increasingly tech-centric environment, employee expectations are changing rapidly. Talent management, as a result, is now completely different from what it was just a few years ago. So how does an organisation transform its talent strategy to thrive in the digital age? This was the focus of the latest edition of Talent Talks, Shine.com’s marquee event that witnesses the confluence of renowned human resource HR leaders.
Industry leaders want budget to make healthcare more affordable, simplify the proposed Direct Tax Code and take steps to increase financial awareness. At a time when the country’s economy is hit by the worst slowdown in over a decade, what the budget holds for various sectors becomes all the more important, especially because consumption across most sectors has taken a hit.
Effective October 1, banks are allowed to charge a credit-risk premium over external benchmarks for calculating the effective interest rate on loans. This makes the credit score of borrowers an important factor in determining the interest rates.
Retail banking is showing early signs of stress, and growth may well have peaked. The latest data from Experian Credit Information Company India (for the period July’FY20) suggests that stress is building up in the personal and two-wheeler loan categories. The delinquency rate, particularly in the 30-day past-due (DPD) bracket, may indicate that a weak job market, and the economic slowdown are starting to pinch wallets.
Plagued by non-performing assets, banks are busy putting properties up for sale. State Bank of India alone has auctioned 700 crore worth of properties this month.
