Bank Loan – Left Bank http://left-bank.org/ Wed, 11 May 2022 01:55:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://left-bank.org/wp-content/uploads/2021/07/icon-2-150x150.png Bank Loan – Left Bank http://left-bank.org/ 32 32 Upstart CEO Defends Loan Balance Increase, Says AI Lending Platform Model Hasn’t Changed https://left-bank.org/upstart-ceo-defends-loan-balance-increase-says-ai-lending-platform-model-hasnt-changed/ Tue, 10 May 2022 22:57:20 +0000 https://left-bank.org/upstart-ceo-defends-loan-balance-increase-says-ai-lending-platform-model-hasnt-changed/ In an interview Tuesday with CNBC’s Jim Cramer, Upstart Holdings CEO David Girouard sought to downplay investor concerns about the increase in loan balances held on the fintech company’s balance sheet at the end of its term. first trimester. Shares of the artificial intelligence lending platform plunged 56.42% on Tuesday, closing at $33.61 apiece, a […]]]>

In an interview Tuesday with CNBC’s Jim Cramer, Upstart Holdings CEO David Girouard sought to downplay investor concerns about the increase in loan balances held on the fintech company’s balance sheet at the end of its term. first trimester.

Shares of the artificial intelligence lending platform plunged 56.42% on Tuesday, closing at $33.61 apiece, a day after it also downgraded its revenue and adjusted EBITDA margin outlook for the whole year. Upstart cited rising interest rates and broader economic uncertainty for the revised forecast, which was softer than Wall Street expectations. Upstart’s loan balance was also a focus on Tuesday.

“Just to be clear, in the first quarter, a single-digit percentage of loans originated on our platform came to our balance sheet,” Girouard said in a “Mad Money” interview. “That hasn’t changed in our history.”

On Monday, Upstart announced that it held $604.4 million in loans on its balance sheet, as of March 31, compared to $260.8 million in the fourth quarter of 2021. Some analysts noted that this increase increased exposure to the Upstart’s credit risk, and Cramer told Girouard he was “shocked” by the figure.

“We said we used loans on our balance sheet to test new products and new models, and that’s a lot of what those accounted for,” Girouard said.

Upstart has recently expanded into the auto loan market, while striving to roll out a low-cost loan product.

“It’s not a change in our model,” Girouard said, referring to Upstart’s use of its balance sheet to support research and development of new loan products. “Over 90% of our loans are issued and held by banks or issued by banks and sold forward to institutional markets. That has not changed.”

Upstart, which went public in December 2020, has been soaring for much of the past year and reached an all-time closing high of $390 per share on October 15. rob growth companies in response to a more hawkish Federal Reserve. As of Tuesday’s close, Upstart shares were down about 91% from their closing high.

Several Wall Street analysts downgraded Upstart shares on Tuesday. Cramer told Girouard he believed in part of Tuesday’s dramatic fall in stocks because investors realized there was “a lot more risk” than they previously thought.

“All other things being equal, I prefer [if] our stock was going up. But the fundamentals of our business haven’t changed,” said Girouard, a former Google executive who also founded Upstart. “Earnings and growth have been the combination since our IPO in December 2020 and since before that. We are proud of what we build.”

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Head of UN agency resigns after questions arise over loans https://left-bank.org/head-of-un-agency-resigns-after-questions-arise-over-loans/ Mon, 09 May 2022 01:26:59 +0000 https://left-bank.org/head-of-un-agency-resigns-after-questions-arise-over-loans/ United Nations Secretary-General António Guterres called on a senior UN agency official to resign on Saturday, shortly after The New York Times published an article detailing how the agency had awarded $61 million. dollars in loans and grants to a single British family. , according to a senior UN official. The United Nations Office for […]]]>

United Nations Secretary-General António Guterres called on a senior UN agency official to resign on Saturday, shortly after The New York Times published an article detailing how the agency had awarded $61 million. dollars in loans and grants to a single British family. , according to a senior UN official.

The United Nations Office for Project Services, a little-known agency for operational projects, has ventured into territory no other United Nations agency has entered: by partnering with the sector private for profit in 2015 by operating as an investment bank. Now he could lose up to $22 million in bad debt, according to UN auditors.

The scandal has rocked and embarrassed the UN, according to several diplomats and staff, at a time when it is appealing for millions of dollars in aid from donor countries for the war in Ukraine and other crises. An internal investigation into the transactions was completed on Thursday, but its findings have not been made public.

The United States, which sits on the UN agency’s board, said its leadership must respond to the allegations and be held accountable. In a series of tweets On Sunday, Chris Lu, the US ambassador to the UN for management and reform, called for a comprehensive review of the agency’s “business model, governance structure and personnel”.

“At a minimum, we believe UNOPS management missed clear warning signals, failed to provide necessary oversight and took unacceptable risks with funds,” Mr. Lu tweetedusing the acronym for Office for Project Services.

An official statement Mr. Guterres said on Sunday he had accepted the resignation of Grete Faremo, Norway’s former minister and executive director of the agency, who personally approved the loans. Ms. Faremo had entrusted tens of millions of dollars to a British businessman, David Kendrick, after meeting him at a party in New York in 2015. Ms. Faremo’s agency also gave a grant of 3 million to a group led by 22-year-old Daisy to raise awareness of threats to the world’s oceans.

Ms. Faremo, in a letter sent to her staff early Sunday morning and obtained by The Times, offered a different account of her resignation. She said she tendered her resignation on Friday because “without knowing the whole story, it happened under my watch.”

“I acknowledge my responsibility and have decided to step down,” she said.

Ms Faremo appeared to blame her deputy, Vitaly Vanshelboim, who was placed on administrative leave in December as the UN investigated the deals. After mentioning the investigation and Mr Vanshelboim, Ms Faremo said “a shocking breach of trust hurts and has deeply shaken the organization”.

But the senior UN official, who asked not to be named because he was not authorized to speak officially, said Ms Faremo had been ordered to resign. Mr. Guterres, the official said, decided to act quickly after the publication of the Times article in a bid to restore the confidence of donor countries in the organization.

Lebanese Ambassador to the UN, Amal Mudallali, tweeted“Unbelievable!! Who is hiring these UN officials? Why there is no oversight!!,” with a link to the Times article.

In fact, Ms. Faremo and Mr. Vanshelboim were among the most senior officials in the UN and were appointed by Mr. Guterres.

In his statement, Mr. Guterres said he was grateful for Ms. Faremo’s commitment and dedication to the organization. His resignation is effective from Sunday. Mr Guterres has appointed an interim manager, Jens Wandel, while he searches for a replacement, the statement said.

Mr Wandel “has had a clear record of working on UN reform”, said Farhan Haq, the UN’s deputy spokesman. Mr. Wandel, a former UN official from Denmark, where the agency is headquartered, was most recently Mr. Guterres’ special adviser on reforms.

We still do not know if Mr. Wandel will have the mandate, in his temporary role, to initiate significant reforms. A senior UN official said any reform or restructuring of the agency would be at the discretion of its board, which is made up of a group of member states including the United States.

Mr Lu said on Sunday that the board had demanded a full briefing with the agency which would take place shortly.

A spokesman for the US mission to the UN said a board briefing was scheduled for May 16 ahead of Ms Faremo’s resignation on Sunday and the board was preparing for it pending further advice.

In a separate statement on Sunday, the UN agency said it did not have access to the internal UN investigation report and was eagerly awaiting its findings. It said it was “already implementing continuity plans to ensure Ms. Faremo’s departure will not affect regular project activities”.

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HDFC raises home loan interest by 30bps after RBI repo rate hike https://left-bank.org/hdfc-raises-home-loan-interest-by-30bps-after-rbi-repo-rate-hike/ Sat, 07 May 2022 07:30:00 +0000 https://left-bank.org/hdfc-raises-home-loan-interest-by-30bps-after-rbi-repo-rate-hike/ Mortgage lender Housing Development Finance Corporation (HDFC) raised the interest rate on home loans by 30 basis points on Saturday, effective May 9, following the monetary policy committee’s decision to raise the repo rate. benchmark of 40 basis points earlier this week. The new rates will start at 7 percent from 6.7 percent previously. […]]]>

Mortgage lender Housing Development Finance Corporation (HDFC) raised the interest rate on home loans by 30 basis points on Saturday, effective May 9, following the monetary policy committee’s decision to raise the repo rate. benchmark of 40 basis points earlier this week. The new rates will start at 7 percent from 6.7 percent previously.

HDFC joins a list of lenders, including ICICI Bank, Bank of Baroda, RBL Bank, who raised interest rates following MPC’s rate hike at an off-cycle meeting.

“HDFC is increasing its Retail Prime Lending Rate (RPLR) on home loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked by 30 basis points effective May 9, 2022,” the lender said in a statement. . The mortgage lender had also raised interest rates on home loans last week, but only for its existing borrowers, by 5 basis points. Thus, for existing customers, the interest rate for home loans will increase by 35 basis points.

“HDFC follows a 3-month cycle to resume lending to existing customers. Thus, the loans will be resumed based on the date of the first disbursement of each client,” the lender said.

For new customers, on loans up to Rs 30 lakh, the interest rate will be 7.10%. And, for loans between Rs 30 and 75 lakhs, the interest rate will be 7.35%, while for loans above Rs 75 lakhs, the interest rate will be 7.45%.

Earlier this week, ICICI Bank raised its benchmark external lending rate by 40 basis points to 8.10% while Bank of Baroda raised its repo-linked lending rate to 6.90%. The public sector lender also withdrew interest rate subsidies available for home and car loans that had been introduced to boost retail credit. RBL Bank’s repo-linked lending rate is now 9.50%, effective May 4, 2022.

A group of lenders including Bandhan Bank, Kotak Mahindra Bank, Jana Small Finance Bank, Bank of Baroda, ICICI Bank and Punjab National Bank have also announced deposit rate hikes across multiple duration baskets for retail customers.

The MPC raised the benchmark repo rate to 4.40% in an off-cycle meeting amid upside risks to inflation, signaling that the rate cycle has reversed and the days of ultra-low interest rates are over. This is the first rate hike in 45 months since August 2018.

Analysts are of the view that the increase in the benchmark repo rate will bode well for banks as they will benefit from higher returns on the portfolio of loans that are linked to external benchmarks, but the rise in CRR will have a negative impact on lenders’ margins and could offset the benefit of rising repo rates.

In December 2021, just over 39% of banking system loans were linked to the external benchmark, according to data from the Reserve Bank of India (RBI), with 58.2% of real estate loans linked to external benchmarks.

The share of MSMEs, personal loans, car loans and education loans linked to an external reference is 69.2%, 46.2%, 31.1% and 23%, respectively, according to RBI data. .

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Bank lending is accelerating almost twice as fast as last year https://left-bank.org/bank-lending-is-accelerating-almost-twice-as-fast-as-last-year/ Thu, 05 May 2022 17:32:00 +0000 https://left-bank.org/bank-lending-is-accelerating-almost-twice-as-fast-as-last-year/ Bank lending rose by double digits – 10% in the fortnight ending April 23 as the economy gets back on track after facing disruption from COVID-related lockdowns, nearly doubling the pace of 5.7% during the same period a year ago. Bank credit outstanding stood at Rs 119.5 lakh crore as of April 23, up 10% […]]]>
Bank lending rose by double digits – 10% in the fortnight ending April 23 as the economy gets back on track after facing disruption from COVID-related lockdowns, nearly doubling the pace of 5.7% during the same period a year ago.

Bank credit outstanding stood at Rs 119.5 lakh crore as of April 23, up 10% year on year from 5.7% in the same period a year ago, according to the latest Reserve data. Bank.

The latest assessment of the economy by RBI economists acknowledges the recovery in bank lending which could help the economic recovery. “Bank credit has accelerated and the labor market is accelerating. There is an acceleration in the travel and hospitality sectors. The construction and real estate sector has also recorded a recovery” the state of the economy published in the last mentioned monthly bulletin.

Healthy economic growth and government fiscal support are expected to lift bank credit growth by 200-300 basis points to 11-12% this fiscal year according to ratings firm Crisil. The estimate takes into account the rating agency’s forecast of gross domestic product (GDP) growth of more than 7% for this fiscal year.

“The biggest difference we expect for this fiscal year is the rise in the corporate credit growth trajectory; we see it doubling to 8-9%,” said Krishnan Sitaraman, Senior Director and Deputy Head of Ratings, CRISIL Ratings. . “The Union budget pegs public capital expenditure at around Rs 7.5 lakh crore, a significant increase from last fiscal year, with one on public infrastructure. The downstream impact of this on key sectors , along with the announced Production Linked Incentive Program (PLI) for 13 key sectors, will drive this.Sectors expected to experience maximum growth, given their industry dynamics, include Metals and Chemicals. metals, chemicals, engineering and construction.

In its latest financial sector research note, ratings firm Icra said bank credit growth will come from credit growth in the non-food segment, which continues to be driven by the retail and food segments. MSMEs and partly through co-loan agreements with non-bank financial companies. . While the wholesale credit segment, growth will also be supported by the shift in debt capital market demand towards bank credit, in an upside yield scenario as seen over the course of the year. fiscal year 2019.

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Australian ANZ sees bigger margins on rate hike, cash profit rises https://left-bank.org/australian-anz-sees-bigger-margins-on-rate-hike-cash-profit-rises/ Wed, 04 May 2022 03:45:00 +0000 https://left-bank.org/australian-anz-sees-bigger-margins-on-rate-hike-cash-profit-rises/ H1 cash profit increased by 4.1% Said on track to grow in line with peers by year end Increase in New Zealand home loan market share Declares a dividend of A$0.72 per share Share up around 2%, best intraday gain since mid-March May 4 (Reuters) – Australia and New Zealand Banking Group (ANZ.AX), the country’s […]]]>
  • H1 cash profit increased by 4.1%
  • Said on track to grow in line with peers by year end
  • Increase in New Zealand home loan market share
  • Declares a dividend of A$0.72 per share
  • Share up around 2%, best intraday gain since mid-March

May 4 (Reuters) – Australia and New Zealand Banking Group (ANZ.AX), the country’s fourth-largest lender, beat first-half profit estimates as it earmarked less money for related defaults to COVID-19 and signaled the end of narrowing margins as interest rates begin to rise.

The Melbourne-based retail lender has set an optimistic tone for a series of Australian banking results expected next week, the first since the country’s central bank ended a decade of rate cuts by raising the official rate one day sooner amid runaway inflation and booming property. prices. Read more

Australia’s so-called big banks have seen their profit margins shrink as historically low interest rates have created stiff competition. A reversal of this trend, which ANZ believes could continue for an extended period, would see these margins rise again.

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“All other things being equal… [margins] have bottomed out,” CEO Shayne Elliott said on a call with analysts Wednesday. “But the big unknown is the level of competition. There should be, there will be, an expansion of margins. The degree of it is difficult to predict.”

Helped by the release of A$284m of credit provisions – cash set aside for bad loans – ANZ said profit from continuing operations rose 4.1% from a year ago for reach A$3.11 billion ($2.2 billion) in the six months to the end of March, ahead of a Visible Alpha consensus estimate of A$2.99 ​​billion.

But its net interest margin – a closely watched measure that shows the difference between borrowers’ interest payments and the profit the bank makes on loans – shrank to 1.58% from 1.63% on the same period.

ANZ has faced the added hurdle of losing share of the mortgage market, the engine of Australian bank profits, since 2019, due to issues of slow application processing times linked to understaffing.

Elliott said the bank now plans to grow its mortgage portfolio at the same rate as other major national banks by the end of the fiscal year.

ANZ shares were up 0.7% mid-term, in line with peers, while the broader market (.AXJO) was flat. Banks are seen to benefit from rising interest rates because they can delay paying additional interest on deposit accounts while charging higher mortgage rates.

“The weak core earnings result should worry investors, however, the second half should improve as rising rates begin to push net interest margins higher,” Citi analysts said in a note.

ANZ also said it planned to introduce a new corporate structure to protect banking customers from any impact from non-banking activities, a method used by global banks.

The bank declared an interim dividend of 72 Australian cents per share, up from 70 Australian cents a year earlier.

No. 2 lender National Australia Bank Ltd (NAB.AX) is set to release its half-year results on Thursday, while Westpac Banking Corp (WBC.AX) announces interim results on May 9 and top lender Commonwealth Bank of Australia provides an update. quarterly day on May 12.

($1 = 1.4088 Australian dollars)

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Reporting by Byron Kaye in Sydney and Sameer Manekar and Harish Sridharan in Bengaluru; Editing by Shailesh Kuber and Richard Pullin

Our standards: The Thomson Reuters Trust Principles.

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Business News | Stock and Equity Market News | Financial news https://left-bank.org/business-news-stock-and-equity-market-news-financial-news/ Mon, 02 May 2022 12:37:44 +0000 https://left-bank.org/business-news-stock-and-equity-market-news-financial-news/ Search mutual fund quotes, news, net asset values Adani Wilmar INE699H01024, PUNCH, 543458 Yes Bank INE528G01035, YESBANK, 532648 Adani Power INE814H01011, ADANIPOWER, 533096 Wipro INE075A01022, WIPRO, 507685 Addiction INE002A01018, TRUST, 500325 […]]]>












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IDBI Bank seeks to reduce the gross bad debt ratio to below 14% by March 2023 and below 10% by March 2024, Sharma said.

IDBI Bank eyes 10-12% loan growth in FY23 and will reduce bad debt, says Managing Director Rakesh Sharma


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