DMI Finance raised $47 Million Equity

DMI Finance raised $47 Million Equity Investment from
Sumitomo Mitsui Trust Bank, Limited. and others 

DMI Finance Private Limited (“DMI Finance”) today announced the closure of a USD 47 million equity investment round which included new investor Sumitomo Mitsui Trust Bank Limited. (“SuMi TRUST Bank”)

 

DMI Finance is the Non-Banking Financial Company (“NBFC”) of the DMI Group and has been a lender in India since 2009. It is a pioneer and leader in embedded digital finance in India and is the lending partner of choice for over 25 businesses including category-defining partnerships with Samsung and Reliance Retail. Its products include personal loans, lines of credit, BNPL, OEM financing, and MSME loans.

 

DMI Finance has a full-stack digital lending and loan life cycle management platform and has a pan-India customer base of over 6 million which is expected to grow at least 10% month on month through 2022.

 

This equity raised by DMI Finance takes its total equity base to USD 500 million. It is AA- rated by ICRA and supported by all the leading banks in India. SuMi TRUST Bank joins existing investors in DMI Finance including New Investment Solutions and NXC Corporation.

 

The spokesperson for DMI Finance said: “We are in the early stages of what is already an incredible period of building India’s digital financial ecosystem. As we look to drive financial inclusion at scale, we welcome SuMi TRUST Bank’s vote of confidence in our vision and execution.”

 

The spokesperson for SuMi TRUST Bank said: “We are excited to start the partnership with DMI and build the future of Finance. Digital financing in India is entering a high growth phase and will be instrumental in achieving financial inclusion. DMI is rightly placed to capitalize on the opportunity as it has successfully combined fintech and last-mile reach capabilities to service the aspiring consumer base in India. ”

Federal Bank partners with

 Federal Bank partners with CredAvenue’s Securitization Platform

Federal Bank has tied up with CredAvenue for Portfolio management of their Securitization Book and implemented CredPool - an institutional debt platform of CredAvenue. This arrangement will help Federal Bank to digitally monitor their ABS & MBS pool assets more efficiently through their technology platform. The partnership entails CredAvenue providing post-transaction fulfilment services and portfolio management for their Direct Assignment portfolio. CredAvenue’s pooled transaction fulfilment platform has been supporting a host of leading Banks, Federal Bank being the latest addition. The platform is helping Banks and NBFC’s meet the prevailing and new regulatory guidelines pertaining to securitization and direct assignment.

“The Bank, in partnership with CredAvenue, has effectively automated the end-to-end processes for Direct Assignments of Retail portfolio. This automation has enhanced the controls over the portfolio while giving us the ability to further scale up our plans for in-organic selective portfolio acquisitions.  In CredAvenue, we have found a strong partner and look forward to expanding our relationship with them over the coming years” said Shalini Warrier, ED & Head Retail Business, Federal Bank.

“We provide a comprehensive debt ecosystem for originators (NBFC’s) and provide a complete fulfilment solution for all the lenders that are associated with us. Our technology has the capability to provide customized solutions based on each bank/lender’s requirements for their portfolio management. Our team ensures a quick and seamless integration with an easy-to-use interface for our partners,” said Gaurav Kumar, CEO, CredAvenue.

Honda Cars India ties up with IndusInd Bank to offer

Honda Cars India ties up with IndusInd Bank to offer 

lucrative financing schemes ahead of festive season

Honda Cars India Limited (HCIL), leading manufacturer of premium cars in India has partnered with IndusInd Bank to offer a gamut of convenient, affordable and personalized finance schemes for its customers, addressing their varied financing and payment needs. The partnership will facilitate customers to avail custom-built financing solutions on purchase of Honda Amaze and Honda City such as Low EMI, Flexi term, upto 100% ex showroom funding and customised schemes for specific customer groups like Farmers etc. 

Considering the auspicious festive period ahead of us, HCIL has tied up with multiple financiers including PSU Banks, Retail Financiers and NBFCs, with a keen focus on semi-urban and rural regions, to offer competitive interest rates and flexible repayment options to enhance customer convenience during their car purchase.  Special schemes have also been offered to make this buying season even more attractive and rewarding. These schemes will offer easy to buy options for customers in the prevailing COVID scenario, where more and more customers are opting for personal mobility to keep themselves safe and healthy.

Commenting on this partnership and roll out of special schemes, Mr Rajesh Goel, Senior Vice President & Director, Marketing & Sales, Honda Cars India Limited, said, “The partnership with IndusInd Bank is an extension of our efforts towards making personal mobility more accessible and affordable to diverse set of customers, both salaried and self employed. We anticipate increased demand during festive period, and with this partnership we will be offering easy, hassle – free and personalised financing solutions designed to encourage purchase and elevate car ownership experience.” He further added “Leveraging IndusInd Bank’s wide network of distribution points and branches, we will be increasing our reach and penetration across the country while making the brand interaction and purchase process much easier for customers.”

Speaking about the partnership, Mr. S. V. Parthasarathy, Head – Consumer Finance Division, IndusInd Bank, said, “We are proud and excited to be partner with Honda Cars India. With this, our customers will have a seamless journey towards financing and ultimately driving their dream cars.” Elaborating further on the partnership, Mr. T.A.Rajagoppalan, Executive Vice President, IndusInd Bank, said, “Our association with Honda Cars India will further enrich customer experience and aid the journey to purchase their dream cars with our pocket-friendly financial schemes, warm customer service and extensive market knowledge. These lucrative and customized financial schemes can be availed by all customers through an easy documentation process followed by our network pan-India.”

8 Steps to your first home

8 Steps to your first home

Author: Manoj Viswanathan – Managing Director and the Chief Executive Officer of Home First Finance Company India Ltd.

For each of us somewhere there exists a perfect partner, a perfect job, a perfect life with a perfect home. Or does it? In reality, once you decide to buy a house you start going through website listings, suggestions from well-wishers and newspaper classifieds, the differences between them soon start blurring. They all start looking like the same house viewed from a different angle. Before you resort to the game of Akkad-Bakkad to make one of the biggest decisions for your family, just hear me out.

What you really need before even seeing these houses is a basis on which you can compare them - basic functionality, neighborhood safety and facilities can never be taken for granted. Judge them based on these factors and you will have yourself a house which is not only dreamy and welcoming but also has everything you need at the snap of a finger – a real deal!

So, here are the 8 commandments of home buying to keep in mind when you start looking for a house:

1.     What's the purpose and usage – Is this house an investment or your next home? Who all will live in it?  Would you want a readymade home or a house in construction? Do you want a garden in your house? Answers to these questions can tell you all about the size of plot and house you want. While a new house will be costlier as compared to an old one, in the long term it will incur much less maintenance and repair expenditure in comparison. If you are going for an old house, make sure to have the waterproofing, plumbing and electrical connections thoroughly checked beforehand to prevent any unpleasant surprises.

2.  Locality of your choice – Is your neighborhood safe to live in? Are there good schools and hospitals nearby? Is there a big market in the vicinity? How about the local transport availability? Does your area come under the green zone or industrial area? An NA (Non-Agricultural) certificate is mandatory while purchasing a house. While some of these questions can be answered by the Google Gods, I would still suggest visiting the locality in person. Knock on your neighbor’s door and have a chat. Check out the locality at odd hours, does it feel safe in the dead of the night?

3.    Budgeting and Property Cost – Now that you have done so much research into home purchase, do not forget to ask your new neighbors also known as your new friends about the going rate for houses in the area. Even if the built-up area and construction quality is different, you have a ballpark idea of the cost with a minor 5-10% difference. A quick online research goes a long way in creating solid benchmarks and you are an Indian, use your birthright. There’s always a scope to negotiate and bargain.

4.  Builder of the House – While you are a first-time buyer, chances are that your builder has constructed a few houses before (I mean, you are trusting your life’s dream with this guy). Get as much information as possible on your builder’s previous projects. Ask Google, about timely completion of previous projects, overall reputation, customer feedback and reviews. Online property forums are a boon to mankind!

5.  Quality of Construction – If you are buying an under-construction apartment, there is no information better than the eye test. Call out your inner detective Shrikant Tiwari and befriend officials / “thekedar s” at the construction site or the watchman. Ask questions regarding delivery time, any problems with water supply or water logging or any noticeable structural flaws. Get fresh local gossip with tea and enjoy the little sips.

6.  Legal and Technical Documentation – Any housing you may have opted for, get into the details of the property “title deeds” and “registration” paperwork. Ensure the agreement clearly mentions the carpet area, built-up area and super built-up area along with the final price that you have negotiated. It is advisable to run it by your lawyer to be on the safer side. Some of the technical stuff like fire, water, electricity approvals are a must. In fact, before you start living in the new home, you have to get an occupational certificate (OC). In an apartment complex, the developer needs to have all the above approvals along with other NOCs. This due diligence is very important!

7.  Financing your dream home - Now that you are confident about your choice of property and you have got a sweet deal, next is - how you are going to fund it. A loan is generally a good option here. Look for a housing finance company or a bank that will allow you to pre-pay your loan easily. This will help you become debt free soon. Also, you will get tax benefits on a housing loan. Yes! Extra savings! Banks and other lending institutions usually put up an “Approved Project” stamp on signboards. It essentially indicates that Banks / NBFCs have studied this project and are fine with sanctioning a home loan. Avoid taking personal loans or borrowing from relatives etc., as these are short term loans and will put undue pressure on your monthly cash flows.

8.  Resaleability of the property – One last point and a much underrated one at that. I know you are not planning to resell this house in the near future. However, one way to evaluate your home as a long-term investment is through its Resale Value. Also, God forbid, should some unforeseen circumstances lead us down this path, it is a smart idea to be aware of our own wealth.

Long list! But if you have read the entire thing, you are now more confident about the steps to buy a house. Just follow them like a checklist for every property you like and you will be able to make a much more informed decision. At least, then you can boast of a perfect house, a perfect life will take a couple more commandments though! 

BharatPe forays into consumer fintech domain with

BharatPe forays into consumer fintech domain with
the launch of 12% Club

·         First-of-its-kind investment and borrowing app for consumers, in partnership with RBI approved NBFCs

·         Offers up to 12% interest annually for consumer investments with no lock-in

·         Consumers can borrow up to Rs 10 lacs at an interest rate of 12%

·         Targets investment of US$ 100mn and loan book of US$ 50mn from the product in the first year

BharatPe, one of India’s fastest growing fintech companies, today announced its foray into the consumer space with the launch of its first-of-its-kind consumer product- 12% Club. Available on Google Play Store and Apple App Store, this product is set to redefine the rules of consumer lending and investments. With 12% Club, consumers will have an option to invest and earn upto 12% annual interest or borrow at a competitive interest rate of 12%. BharatPe has partnered with RBI approved NBFCs to offer this investment-cum-borrowing product for consumers. The company aims to achieve an investment AUM of US$ 100 mn and a lending AUM of US$ 50 mn from this product, by the end of the current fiscal.

The consumers on the 12% Club app can invest their savings anytime by choosing to lend money through BharatPe’s partner P2P NBFCs. Additionally, consumers can avail collateral-free loans of upto Rs. 10 lacs on the 12% Club app for a tenure of 3 months, as per their convenience. There are no processing charges or pre-payment charges on the consumer loans. The loan eligibility will be defined based on a number of factors including consumer’s credit score, the shopping history using PAYBACK loyalty system or the payments done via BharatPe QR.

The consumers investing via the 12% Club app can put in a request to withdraw their investment anytime, partially or completely, without any withdrawal charges. They can start their investment journey by investing as low as Rs. 1000 and enjoy daily credit of interest. The upper limit for investment by an individual is currently set at Rs. 10 lacs and would be increased to Rs 50 lac over the next few months.

Commenting on the launch, Suhail Sameer, Chief Executive Officer, BharatPe said, “As we begin our journey on the consumer side, our focus will be to launch products that are industry shaping, 100% digital and easy to use. This one-of-its-kind product for consumers has been designed to ensure industry-best benefits both for lenders, as well as borrowers. We believe that 12% Club will strike the right chord with a diverse set of new-age digitally savvy customers- from young salaried individuals, to professionals with disposable incomes, as well as the investors who park their funds in various financial instruments. The initial response has been phenomenal. In the pilot phase, we have seen great traction with US$ 5mn of monthly investment run rate and US$ 1mn of monthly borrowing run rate. We are confident that this product will be well received in the market and will play a key role in driving financial inclusion in the country. This is just the beginning and we will be adding new customer products during the rest of the financial year.”

Added Suhail, “BharatPe’s P2P lending product for merchants has been one of our industry defining products with Gross Investments of close to US$ 700mn done by over 6.3 lac merchants. Also, we are one of the largest B2B Fintech lenders in the country, having disbursed over US$ 300 mn in business loans to over 2 lac merchant partners”

In order to begin the journey of investments/ borrowing via the 12% Club, a customer needs to follow the steps below:

ü  Download the 12% Club app by visiting the link

ü  Complete the sign-up process

ü  Create the 12% Club account and accept T&Cs

ü  Start investments or borrowing journey with 12% Club

Today, BharatPe is a trusted fintech partner for millions of small merchants in India. Over the last 3 years, we have led the way and launched disruptive products to empower merchants- from India’s first interoperable UPI QR, to collateral free business loans and India’s first zero rental POS machines. These products have been well received and have been key contributors for driving financial inclusion for small merchants and kirana store owners.

Recently, BharatPe forayed into the unicorn club with Series E fund raise of US$ 350 mn at a valuation of US$ 2.85 bn. The round, led by Tiger Global, also saw new participation from Dragoneer Investment Group and Steadfast Capital. Five out of the seven existing institutional investors participated in the round - namely Coatue Management, Insight Partners, Sequoia Growth, Ribbit Capital and Amplo. BharatPe is now amongst the Top 5 most valued Fintech startups in India, and has one of the strongest cap tables for any start-up in India.

RBI Repo Rate Announcement

 RBI Repo Rate Announcement | Commentary by CBR

“RBI’s maintenance of an accommodative stance will help sustain homebuyer sentiments which were strengthening pre-second wave. Despite the present disruption, Real Estate has been one of the most resilient industries even amidst the pandemic and has been showing signs of recovery over the last few quarters. With the repo rate and reverse repo rate being maintained at a status quo of 4% and 3.35% respectively, banks and NBFCs will continue to render loans at reduced rates to homebuyers, thus supporting demand in the realty sector.

We also welcome RBI’s directed focus on infusing liquidity in the industry, specifically in sectors such as hospitality and tourism, which will further benefit the overall realty sector.”

Muthoot Finance launches

 Muthoot Finance launches “Muthoot Gold Shield”

Partners with Bajaj Allianz General Insurance to launch Gold Jewellery Insurance

Muthoot Finance, India’s largest gold loan NBFC has tied up with Bajaj Allianz General Insurance, India’s leading private general insurer to provide insurance on gold jewellery as part of their new initiative - “Muthoot Gold Shield”, which is backed and powered by Group Affinity All Risk policy of Bajaj Allianz General Insurance.

Muthoot Gold Shield is the Gold Jewellery Insurance Scheme launched by Muthoot Finance, for its customers in partnership with Bajaj Allianz General Insurance. The policy provides insurance coverage of gold jewellery for individuals. This is designed to provide insurance coverage of gold jewellery articles for customers of the company at the time of closure of gold loan and release of gold ornaments. It will provide insurance coverage to the customers of Muthoot Finance as a loyalty product.

Mr. George Alexander Muthoot, Managing Director, Muthoot Finance said, “Muthoot Finance as a company has always believed in the philosophy of helping people and giving back to society. Going by the initial overwhelming response received for this insurance policy, it has been widely accepted by the customers of the Company. As part of our ongoing customer loyalty programme and social commitment, we are providing customers insurance coverage with an objective to build confidence and help move ahead in life without any fear.”

Speaking on the occasion, Mr. Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance said, “At Bajaj Allianz General Insurance, our endeavour has always been to offer products to ensure that citizens are safeguarded against exigencies. Gold jewellery is an integral part of our country’s culture and hence we have curated this product specifically for financially shielding customers of Muthoot Finance in case of any unforeseen events, thus making them worry-free about their jewellery.”

The Scheme has the following unique benefits which are exclusive to this Insurance Policy:

 1.       It is one of the simplest and easiest ways of obtaining gold jewellery insurance coverage

 2.       Policy covers burglary, robbery, theft from insured person’s home, loss-in-transit and 13 other disasters (natural calamities)

 3.       This is a standalone gold jewellery insurance offering

 4.       Companies typically provide gold jewellery insurance as part of home insurance along with insurance of other articles at home. Normally, the percentage of insurance coverage for gold jewellery is restricted by some insurance companies to a maximum of 15% of the total home insurance policy sum insured.  For instance, if an individual wants to take a jewellery insurance coverage of 1.50 Lakhs from other insurance companies, he/ she will have to take a home insurance policy of about Rs. 10 Lakhs.

 5.       Muthoot Gold Shield is provided at a nominal premium, which is lower than industry average

 6.       ZERO documentation is required and it takes less than 2 minutes to generate a policy

Hinduja Group welcomes RBI report on

 Hinduja Group welcomes RBI report on Ownership Guidelines in the Indian Private Sector Banks

The Chairman of the Hinduja Group of Companies (India), Mr. Ashok Hinduja has welcomed the Reserve Bank of India Internal Working Group’s report on the Review of Extant Ownership Guidelines and Corporate Structure of Indian Private sector Banks (Mohanty Report).

He said “The Working Group has taken a timely and bold stand by proposing a uniform regulatory framework for the entire banking system, dispensing with the regulatory arbitrage available between banks, NBFCs, small finance banks and payment banks. Like in many other fields, we should move to a One Nation, One Banking Regulatory Framework if we are to move towards  realizing our aspiration to be a 5 trillion $ economy. Solid banking apparatus is a must”.

 Shareholder equity has to be the first line of defense in a robust banking system. “The Report rightfully puts a greater onus on the promoter-shareholders to exercise oversight through a higher shareholding limit of 26%, with commensurate voting rights. It helps strengthen the institutional framework by ensuring the promoter responsibility with more skin in the game, Supervisory stance for large conglomerates, including consolidated supervision will ensure the necessary check and balance in the system.”, Shri Ashok Hinduja noted.

Striking a note of caution, “Ring fencing the banking sector from a myriad of emerging risks has to be a constant endeavour, and I am certain the Reserve Bank of India will exercise a continuous vigil as it has done in the past. We hope the RBI will be able to implement these guidelines within a specified time frame. With the past policy interventions and this forward looking guidelines, undoubtedly the year 2020 belongs to RBI” he said.

Policy is progressive and forward looking with

Policy is progressive and forward looking with growth centric initiatives

Policy is progressive and forward looking with growth centric initiatives.  The measures are a potent force to support bond market, catalyze rate transmission and improve liquidity so as to be conducive to the revival prospects.  Core segments like retail and MSME will also have better prospects by measures, such as, rationalisation of Risk Weight for housing loans, enhancement of regulatory retail cap and co-lending with NBFCs/HFCs.  All in all, a feel good policy for the financial system and real segments.

-Shri A. K. Das, Managing Director & CEO,Bank of India

Quote by Mr Dinesh Kmar Khara Chairman

Quote by Mr. Dinesh Kmar Khara Chairman, SBI on RBI's Monetary Policy

“Today’s policy statement by RBI is a perfect exposition of doing “whatever it takes” to revive growth. With growth projections at -9.5 percent and inflation set to be higher at least for now and the possibility of renewed infections in many countries, the monetary policy committee has righty chosen to keep the policy stance accommodative and relying more on discretion based policy responses rather than being strictly rule-based. 

Accordingly, the decision to go down the OMO route for SDL borrowings, increasing the limit for risk weights for the retail portfolio up to Rs. 7.5 crores and linking housing loan risk weights to LTV ratio are policy innovations that will please the markets and nudge the term structure of rates lower. The policy has also targeted specific sectors that have high forward and backward linkages notably the retail and real estate sector. 

Additionally, the decision to operationalize the Co-origination model is right as it brings the best of banks and NBFC together. This will surely increase the reach of the financial sector at such a critical point. The other focus of development and regulatory policy namely discontinuation of automatic caution listing for exporters, 24x7 availability of RTGS, and perpetual validity of CoAs issued to payment operators are also welcome measures. Overall the policy is fixated to revive growth and has attempted to prepare a conducive ground for the same.”

Shriram Transport Finance Q4FY20

The Board Meeting of Shriram Transport Finance Company Limited (STFC), one of the largest asset financing NBFC in the country, was held today to consider the audited financial results for the fourth quarter and year ended 31^st March, 2020.

Financials (Standalone) :

Year ended 31^st March, 2020 :

The Net Interest Income for the year ended 31^st March, 2020 was Rs. 7,916.77

crores as against Rs. 7,762.04 crores in the previous year. The profit after tax was  Rs. 2,501.84 crores (including COVID-19 provision of Rs. 909.64 crores) as against Rs. 2,563.99 crores   recorded in the previous year. The earning per share (basic) stands at  Rs. 110.27  as against Rs 113.01 recorded in the previous year.

Fourth quarter ended 31^st March, 2020:

The Net Interest Income for the fourth quarter ended 31^st March, 2020 was Rs. 1,917.92 crores as against Rs.1,902.76 crores in the same period of the previous year. The profit after tax stands at Rs. 223.38 crores (including COVID-19 provision of Rs. 909.64 crores) as against 746.04 crores   recorded in the same period of the previous year. The earning per share (basic) stands at Rs 9.85  as against Rs.32.88 recorded in the same period of the previous year.

Dividend :

The Board of Directors at  its meeting held on October 24,2019, had declard interim dividend of Rs. 5/- per equity share of Rs. 10/- each for the financial year 2019-20. The interim dividend was paid to eligible shareholders on November 19,2019. In order to conserve cash resources  to face the challenges and contingencies created by Corona virus pandemic (COVID-19), the Board of Directors have not recommended final dividend. As such, the interim dividend shall be the final dividend for the financial year 2019-20.

Assets under Management :

Total Assets under Management as on 31^st March, 2020 stands at Rs. 109,749.24

crores as compared to Rs.104,482.28 crores as on 31^st March, 2019.

Mr Rajan Wadhera, President, SIAM on “Aatma Nirbhar Bharat” package

Mr Rajan Wadhera, President, SIAM on “Aatma Nirbhar Bharat” 

package announced by the Hon’ble Finance Minister

While commenting on the “Aatma Nirbhar Bharat” package announced by the Hon’ble Finance Minister through a series of announcements, Mr Rajan Wadhera, President, SIAM welcomed the focus towards MSMEs ; NBFCs and the Agri-sector. The Agri sector package may benefit the Auto sector indirectly in the medium term but the Indian Automotive industry needed an immediate stimulus to boost demand, which has not happened, as per Mr Wadhera.

Indian Automotive Industry supports employment of more than 3.7 crore people and contributes to 15% of GST

amounting to Rs 1,50,000 crore every year.  The Sector was already facing an unprecedented challenge with 

18% degrowth last year. As per an assessment made by SIAM on the impact of COVID-19 on demand for 

vehicles in the current financial year, the Indian Automobile sector could have a de-growth in the range of (-22)% 

to (-35)% in various industry segments, for the year FY21, if the overall Indian GDP growth is at 0-1% for FY 21.

Mr Wadhera said that it is against this background that the Industry was keenly looking forward to some direct 

fiscal measures which could have boosted demand for the Auto sector and stop job losses. 

He mentioned that SIAM has had several engagements with Government of India at various levels, where 

specific suggestions were made for demand stimulus including reduction in base GST rates from 28% to 18%

for a limited period and an incentive based vehicle scrappage policy, which would have made it a less painful

revival and kick started the industry.

There is also an urgent need to support the dealers in terms of improving their liquidity and including them under 

MSME Act by changing its definition.

The Industry would continue to engage with the Government and seek direct interventions for revival, 

concluded Mr Wadhera.

Quote by Rajnish Kumar

Quote by Rajnish Kumar, Chairman, SBI on the announcements made by FM

“The policy bouquet unveiled by the Government is well-structured, suitably targeted, within reasonable fiscal limits but still having the maximum impact. The measures for MSME through guarantees, equity infusion and debt support will incentivize bank lending to MSMEs as well as providing crucial support to stressed entities in the current situation. The proposed definitional change for MSME sector based on turnover is progressive and is perfectly synchronized with the GSTN framework. 

It is time that we now implement this legislation. The envisaged support of full credit guarantees to the lower rated NBFC and HFC entities will restore stability in financial markets and could act as a clear enabling factor for compressing credit spreads. The steps for real estate sector, postponement of tax returns and reduction of TDS are also important policy milestones that have been announced today”.