Lending businesses face multiple risks; one of them is interest rate risk, which is losses occurring due to adverse interest rate changes. The increased volatility amid unprecedented situations forces financial institutions to recognise the importance of liquidity management in controlling...

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,...

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...

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...

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...

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...

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...

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...

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...

A recent Saral Finance survey suggests that around 67% of Indians have taken a loan at some stage to meet their financial requirements. That is a whopping 938 million people. Worryingly, the number of wilful defaulters has increased steadily over...