Discover a wealth of insightful materials meticulously crafted to provide you with a comprehensive understanding of the latest trends.
In the current economic climate, managing interest rate risk has become paramount for lending institutions. The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.00% in April 2025, aiming to stimulate economic growth amid global uncertainties. This monetary easing, coupled with liquidity infusions totaling over ₹6.21 trillion, underscores […]
In the current economic climate, managing interest rate risk has become paramount for lending institutions. The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.00% in April 2025, aiming to stimulate economic growth amid global uncertainties. This monetary easing, coupled with liquidity infusions totaling over ₹6.21 trillion, underscores […]
As of March 2024, the gross non-performing assets (GNPAs) ratio for scheduled commercial banks stands at 2.8%, a 12-year low, exhibiting an improvement in managing default risks. Despite this, lenders must be continually wary of the impact of risky loans, as it is not just limited to the lending institutions’ profitability. It significantly undermines the […]
According to a report, the number of cases referred to the debt recovery tribunal (DRT), grew significantly to INR 4.02 trillion in FY23. Yet, the amount recovered via this route downslided to 9.2% in FY23 as compared to 17.5% in FY2022. This translates to the debt recovery rate for non-performing assets (NPAs) falling from 17.6% […]
At the forefront of the significant transformation in lending operations is the automated decisioning stage in loan processing—a technological leap that’s reshaping how banks and financial institutions evaluate and approve loan applications. Automated Decision-Making Systems, or ADMS leverage cutting-edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), and advanced analytics to streamline the loan […]
The concept of priority sector lending has its origins in 1972. This was when the Reserve Bank of India (RBI) first introduced the concept of opening up credit access to economically underserved consumers. This step was considered to be an important one in the nation-building journey as it enabled development. In June 2024, the RBI […]
Fintech combines finance and technology and represents the next phase of financial evolution, focusing on innovation. Fintech users, particularly in digital payments, are forecasted to exceed 3.5 billion in 2024. By 2028, the number will reach 4.81 billion. However, as the fintech acceptance and use grows, so does the cybersecurity threat. In 2023, almost 64% […]
Banks have a unique opportunity to leverage new technologies and digital tools to enhance customer experiences and drive innovation in the financial industry. By embracing emerging trends like personalised financial products, spend analytics and cash forecasting, banks can stay ahead of the curve and continue to meet the evolving needs of their customers. The increasing […]
At present, the ease of the application and loan disbursal process has nudged more Micro Small, and Medium Enterprises (MSME) and retail customers to apply for unsecured loans. For example, the government’s PSB Loans in 59 Minutes initiative accelerates the online application and approval process. On top of it, unsecured business loans up to Rs. […]
In a digital-forward economy, borrowers have to repeatedly share extensive personal and financial data with lenders throughout their lifetime, which often poses both inconvenience and security risks. On top of that, this sensitive information includes profile details, addresses, credit card information, bank transactions, and investment details, all of which are vulnerable to potential breaches. With […]
