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 […]
Micro, small, and medium enterprises (MSMEs) account for around 30% of the economy, making them one of the most important sectors in India. These businesses also play an important role in safeguarding the cultural heritage of different communities, driving innovation, and generating jobs. With more than 600 lakh MSMEs spread across the country, cash flow […]
Loan applicants often submit numerous PDF bank statements. Lenders use web-based financial analysis software to quickly extract and analyse data from these documents, assessing cash flow and creditworthiness. PDFs may include identity documents, statements, invoices, and Goods & Service Tax Returns (GSTR). However, a growing challenge for lenders is verifying whether the PDFs are authentic. […]
Due to several factors, lenders are now more likely than ever to make poor risk assessment decisions. These include the speed at which lenders aim to approve loan applications, the growing potential for loan fraud, and increasing delinquent debt. Also, unexpected market downturns and opportunity costs contribute to the risk factors. Moreover, as lenders scale, […]
As the lending industry continues to grow, risk assessment and management will emerge as one of the top functions, enabling lenders to build sustainable, profitable businesses. Managing risk effectively can help companies prevent the growth of non-performing assets (NPAs), loan fraud, lending scams, and other negative consequences. Financial technology will play a key role in […]
Latest reports suggest that around 67% of Indians have applied for a personal loan at some point in their lives. Furthermore, India’s consumer borrowings have surged in recent years as more people fulfil their aspirations, including travel, buying a new car, building a house, and more. As a result, traditional and non-traditional lenders, including banks, […]
A popular technique financial institutions use in managing interest rate risks is duration gap analysis. This provides them with insights into the optimal management of interest rate risk so that they can economically manage the difference in time between a bank’s assets and liabilities. By analysing the duration gap, it becomes easy to understand the […]
Productivity levels are an important measure of success for ambitious lenders looking to build a long-lasting, profitable business. A recent survey indicated that seven out of every 10 employers prioritise the quality of work, while performance indicators such as targets and project completion on time are considered to be primary indicators of productivity. As more lenders […]
Data is increasingly vital in enabling businesses to streamline their workflows, drive revenues, and become profitable in the Internet economy. According to a McKinsey survey titled ‘The data-driven enterprise of 2025,’ adopting artificial intelligence (AI)- powered data practices is helping businesses grow revenues by at least 20% before interest and taxes. Access to high-quality data […]
