Mahaveer Finance secures Rs 200 Cr funding to accelerate vehicle financing solutions
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Indian Express
5 minutes ago
- Indian Express
Nagaraju asks banks to raise capital, lend more
Banks need to further step up lending to meet the economy's demanding growth requirements, and should not hesitate to explore multiple avenues to raise the capital needed, financial services secretary M Nagaraju said on Friday. He assured all necessary policy support to the lenders, and hinted at relaxations in the foreign direct investment (FDI) rules. Speaking to Financial Express Deputy Managing Editor Shobhana Subramanian at the FE Modern BFSI Summit here, Nagaraju said: 'We also actually need to look at reviewing the current FDI rules in the banking sector to enable Indian banks to raise more capital…more patient capital.' The FDI in private banks is currently capped at 74 per cent, whereas the limit is 20 per cent for public sector banks (PSBs); any single entity cannot hold more than 15 per cent in any Indian bank unless exemption is granted by the Reserve Bank of India (RBI). 'If foreign capital comes at a cheaper rate, I think we should welcome (it). Currently, it is 15 per cent (single entity cap), and if it can be more, the banks will be able to expand credit, that's the goal,' the DFS secretary said. He stressed the need to have sustained high growth in credit flows to the needy sectors of the economy, including MSMEs. As of June 27, 2025, credit offtake was up 9.5 per cent on year, lagging deposit growth of 10.1 per cent. Nagaraju's comments come at a time when the State Bank of India (SBI) has raised Rs 25,000 crore through qualified institutional placements (QIPs) to bolster its capital base, and other state-run banks among themselves are set to raise Rs 20,000 crore via this route in the current financial year. 'Credit growth is a little slower in this quarter, but we are expecting that it will pick up… we also want the banks to lend,' the official said. With large corporations flush with cash, credit growth is now largely directed at MSMEs, the secretary said. In March 2025, the aggregate capital adequacy ratio (CAR) of 46 major banks reached a record high of 17.2 per cent, but the credit flows haven't been exactly keeping pace with this, or the investment demand to the assisted via bank capital. With banks required to play a pivotal role in driving India's ambition of becoming a $30-trillion economy by 2047, he said bank credit to the private non-financial sector should reach around 130 per cent of the gross domestic product (GDP) from 56 per cent now. According to Nagaraju, banks and financial institutions need to explore and expand various avenues of raising capital, including conventional equity markets, issuance of Basel III-compliant AT1 bonds and tier 2 instruments. They could also explore innovative methods like tapping global financial hubs, green bonds, sustainability-linked loans and also foreign debt markets to fund domestic credit expansion. He also urged large incumbent banks to focus on capital conservation by reducing operational costs with the use of technology. Nagaraju said banks ought to reimagine deposit mobilisation and increase leverage and productivity, deepen digital and data capabilities, and build future-readiness in terms of ESG-resilience and governance. By advancing these strategic themes, Indian banks could actually transform themselves into stronger institutions, he said. 'Therefore, access to capital from all sources needs to be looked at and worked upon by all of us. We need multiple globally competitive large banks facilitating access to global funds, best talent and technical expertise,' he said. Currently, only two Indian banks — SBI and HDFC — are in the top 100 global banks by total assets, which is not enough, he said, drawing comparison to lenders in China and the US. On further consolidation of PSBs, he said the previous mergers have yielded good results. 'We would see that wherever the synergies are, we can always look at them (more PSB mergers).' Banks anchor inclusive growth by bringing the unbanked under formal financial systems, enabling millions through schemes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and more, he added.
Time of India
18 minutes ago
- Time of India
'Lackadaisical approach': PAC pulls up coal PF body, ministry over DHFL bet
NEW DELHI: The Public Accounts Committee has pulled up Coal Mines Provident Fund Organisation and coal ministry over their failure in dealing with the Rs 1,390 crore investment by the PF body in beleaguered Dewan Housing Finance Company. In its report, the panel said that CMPFO could have exercised the option for early redemption of non-convertible debentures of Rs 864 crore, but failed to do so. The investments were made between 2015 and 2018 and the decision to redeem the debentures was exercised in Dec 2019. The ministry has blamed the "lackadaisical approach" of the Coal Mines Provident Fund Organisation commissioner for not immediately placing the issue before the board of trustees despite the joint secretary in the ministry advising to do so. "The committee also note that Dewan Housing Finance Company was already involved in misappropriation of funds with other States also right from 2015. The committee are distressed to note that despite ill knowing the status of DHFL, the Union coal ministry did not have the processes and procedure to gauge the gravity of the situation so as to prevent investment of pensioner's money in such bond," PAC stated. Of the total investment, the National Company Law Tribunal has so far has given Rs 662 crore, and there is loss of Rs 316 crore along with balance NCDs of Rs 526 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Skinny Drink Is Going Viral for Melting Stomach Fat Fast Hollywood News | USA Click Here Undo "...there has been a critical irregularity on the part of the ministry to oversee the functioning of CMFPO which led to the failure to ensure the safety of its investments due to lackadaisical approach in redeeming debentures of DHFL despite adverse credit ratings. .. The ministry need to explore avenues like asset recovery, additional claims, or even working with the current management or bidders for further resolution. The committee, therefore, are of the opinion that in light of the avoidable loss, CMPFO should evaluate its future investment strategies," PAC stated.
Time of India
18 minutes ago
- Time of India
India–Maldives Ties: 8 key pacts inked in PM Modi-Muizzu meet; UPI, debt relief, fisheries, FTA on table
ANI photo India and the Maldives on Friday exchanged eight important agreements covering debt repayment, fisheries, digital payments, and a new Line of Credit worth Rs 4,850 crore, during PM Narendra Modi's visit to Malé. In the presence of PM Modi and Maldivian President Mohamed Muizzu, both sides reaffirmed their commitment to a stronger economic and maritime partnership. India agreed to ease Maldives' loan repayment burden by 40%, and push digital ties through UPI, RuPay and local currency trade. PM Modi also handed over 3,300 social housing units, vehicles for security forces, and medical aid kits. He and President Muizzu jointly inaugurated infrastructure projects and pledged cooperation on climate, disaster risk, and renewable energy. The visit also marked 60 years of Maldives' independence and India-Maldives diplomatic ties. PM Modi called the agreements a reflection of India's 'Neighbourhood First' approach and long-standing friendship with the island nation.
