What is a letter of comfort?

. In April this year, the Union finance ministry had barred ministries and departments from issuing letters of comfort. The idea was to usher in transparency. And now, the Reserve Bank of India has disallowed such quasi bank guarantee instrument provided by a corporate. So what is this document? . A letter of comfort is … Read more

Capital goods production expands in June, led by capex revival

The Index of Industrial Production for June, released on Friday, showed capital goods output — which is a barometer of investment — rose by 26.1 percent over the year-ago period, the sharpest among TopicsCapital goods | Capex | IMF The Index of Industrial Production for June, released on Friday, showed capital goods output — which … Read more

Muthoot Finance net profit down 17 percent in Q1

Muthoot Finance registered a net profit of ₹802 crore in Q1 FY23 against ₹971 crore in Q1 FY22, a decrease of 17 percent year-on-year (yoy). Loan assets stood at ₹56,689 crore when compared to ₹52,614 crore in the same quarter last year, registering a growth of eight percent yoy. But they declined by two percent … Read more

NBFC, housing finance companies see increase in FD volume after RBI’s repo rate hikes

Fixed deposit: NBFC, housing finance companies see increase in FD volume after RBI’s repo rate hikes New Delhi: In the last three months, the Reserve Bank of India has hiked the key lending rate twice by 90 basis points. The central bank announced the first 40 basis points hike in May and a 50 basis … Read more

Easebuzz gets RBI’s in-principle nod for Payment Aggregation Authorization

Payments Solutions Platform Easebuzz Pvt. Ltd. on Wednesday announced that it has received in-principle approval from Reserve Bank of India (RBI) for Payment Aggregator (PA) Authorizstion. Easebuzz is a digital platform where businesses can include “technology-based solutions”, which are integrated with payments so as to digitize collections with ease, said the firm. Over the years, … Read more

RBI cancels Rupee Co-operative’s license; lender to cease business Sep 22

The Reserve Bank of India (RBI) on Wednesday canceled the license of the Rupee Co-operative Bank, saying the Pune-based lender does not have adequate capital, earning prospects and it does not comply with regulations. Rupee Co-operative will cease to conduct business from September 22. Maharashtra’s Commissioner for Cooperation and Registrar of Cooperative Societies will issue … Read more

India at 75: The economic institutions have tended to over-regulate

For India’s economic regulators, acquiring a better understanding of markets and acting accordingly will be the challenge for the next 25 years. TopicsIndependence Day | Indian Economy | Niti Aayog This is the fifth in a six-part series in the run-up to the 75th Independence Day on August 15, 2022. It explores how institutions—Constitution, Legislature, … Read more

Sundaram Finance PAT up 18% to Rs 226 cr, logs highest Q1 disbursements of Rs 4,895 cr

Chennai-based Sundaram Finance on Monday reported an 18% jump in profit after tax (PAT) to Rs 226 crore for the first quarter of FY23 as against Rs 192 crore in the corresponding quarter of the last fiscal year. Total income of the non-banking financial company stood at Rs 942 crore as against Rs 956 crore … Read more

Small Finance Banks allowed to offer more forex products

Small finance banks will now be able to offer a wide range of forex products to their customers. In a move to provide flexibility to small finance banks the Reserve Bank has allowed small finance banks which have completed two years of operations of as Category-II Authorized Dealer to do Category-I Authorized Dealer business, subject … Read more