Atmadip Ray

Satin Creditcare Network plans to raise $5 million through bonds at an all-inclusive cost of 11.32%. The bonds, maturing in 36 months, will be issued on September 25 with a coupon rate of 7.9% linked to SOFR. Interest is payable semi-annually. Last week, the company raised Rs 120 crore in a securitization deal with HSBC India.

Affordable housing finance provider Vastu Housing Finance Corporation is looking to raise up to $50 million from United States International Development Finance Corporation (DFC) in a long term external commercial borrowing.

Federal Bank's leadership plans to sustain its deposit mobilisation and credit expansion by offering tailored solutions to different customer segments. Outgoing MD Shyam Srinivasan emphasized the need for banks to focus on wealth management and personalized services. KVS Manian will take over as MD, while Srinivasan is expected to become non-executive chairman of Fedfina Financial Services.

RBI Governor Shaktikanta Das emphasized the need to address inflation, which remains above the target level of 4%. Speaking at a Bretton Woods Committee event, he highlighted concerns about global financial stability and banks' exposure to commercial real estate. He urged policymakers to adopt forward-looking regulatory measures.

India's foreign exchange reserves reached a new high of $689.235 billion as of September 6, according to the Reserve Bank of India. The reserves increased by $5.248 billion in the week ending September 6, marking the fourth consecutive weekly rise. Foreign currency assets rose by $5.107 billion to $604.144 billion, while gold reserves increased by $129 million to $62 billion.

Banks' fixed deposits have grown faster than savings deposits for two consecutive fiscal years, increasing the cost of funds and pressuring net interest margins. Term deposits surged by 18.64% to Rs 116 lakh crore by March 2024, while savings deposits rose by 6% to Rs 63 lakh crore.

Bandhan Bank has updated its deposit rates, introducing a new one-year fixed deposit scheme at 8.05% and discontinuing the one-and-nine month scheme. Senior citizens will receive 8.55% for the one-year deposit. The bank also offers 8% for deposits from one year one day to one year nine months and a five-year tax saver deposit at 7%.

Regional disparities in agricultural lending persist despite a record high in institutional credit, according to RBI deputy governor Swaminathan J. Speaking at an international conference, he emphasized the need to address these imbalances and promote sustainable agriculture by ensuring equitable access to financial resources, tools, technology, and knowledge for farmers.

Non-bank lenders in India have expanded their deposit base by 21% in FY24, outpacing banks' 13.5% growth, according to RBI data. Major NBFCs like Bajaj Finance and Shriram Finance offer higher interest rates than banks, making them attractive to savers. The number of deposit-taking NBFCs has been reduced to 25 from 34 last year.

Jana Small Finance Bank has introduced a flat 6.75% rate for short-term deposits over Rs 10 lakh and removed penalties for early withdrawal. This offer, effective from September 19, aims to attract short-term funds. Small savers will get rates between 3.5% and 6.5%, while seniors receive an additional 50 basis points.