Bonds prices corrected on the back of bank and fund buying as traders weighted the possibility of a pause in policy rate hikes by the Re serve Bank of India.
The purchases took up the
price of the 10-year 7.8 per cent coupon security due in 2021 to Rs
95.48 (par value Rs 100) or a yield of 8.50 per cent.
Intra-week, the security had hit a low of 8.55 per cent (Rs 95.18).
Traders said the re covery was prompted largely by provident funds
purchas es. Although provident fund elevated bonds, yields were still at
six basis points off the previous week's 8.44 per cent (Rs 95.86).
Showing posts with label Data. Show all posts
Showing posts with label Data. Show all posts
Monday, October 10, 2011
Saturday, July 30, 2011
Tuesday, July 5, 2011
Loan market hit but not out
Sunitha Natti - Express News Service - Last Updated : 03 Jul 2011 01:25:02 PM IST
On June 16, the Reserve Bank of India increased key rates for the tenth time in 16 months, and mortgaged India let out a collective curse. Bangalore-based software professional Mahesh Kumar, who had taken a housing loan of Rs 29 lakh at a floating interest of 9.25 per cent in May 2010, was one of those who cursed. He was slated to pay Rs 26,850 as EMI when he started; he’ll now be forking out Rs 31,900. With the cumulative increase of prime lending rates by 275 basis points since March 2010 (where 100 basis points equal 1 per cent), borrowers like Kumar are being forced to pay much more than anticipated while prospective buyers prepare to postpone their dreams.
NHB says oversupply condition in housing market, hints at price correction
Jul 01 2011 , New Delhi
National Housing Bank, a wholly-owned entity of Reserve Bank of India, in its report on the housing finance market in 2010 released on Friday, has said there is an oversupply condition in the residential property sector, and held out the possibility of a price correction if present trends continue.
The report “Trend and progress of housing in India” highlights important trends like growing competition in the primary housing finance market in terms of marketing and innovative products, and high food inflation which has led to low bank credit for most of 2010.
Launching the report, chairman and managing director of National Housing Bank, RV Verma, said, “The housing market is seeing an oversupply condition and if present trends continue, then a price correction is very near.”
Emphasising the need to improve accessibility and affordability of housing finance for the middle- and low-income groups, Verma said, “NHB is exploring the possibility of introducing a mortgage guarantee product in the country in collaboration with some international partners including IFC and ADB to improve accessibility and affordability of housing finance.”
The bank, which follows the July-June financial year, has fixed the refinancing disbursement target for 2011-12 at Rs 12,500 crore against Rs 11,723 crore last financial year.
“NHB’s disbursements in the last financial year reached an all-time high of Rs 11,723 crore against Rs 8,108 crore in 2009-10,” Verma said.
The report mentions that outstanding housing loans increased to Rs 1,53,188.73 crore at the end of March 2010 against Rs 1,26,823.50 crore in March 2009, a growth of 20.79 per cent year-on-year. Rural lending increased from 13.12 per cent in 2008-09 to 16.25 per cent in 2009-10.
Verma said the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (Cersai), a government company under Section 25 of the Companies Act, 1956, has been incorporated for the purpose of operating and maintaining the central registry of loan disbursements under the provisions of the SARFAESI Act, 2002.
Explaining the initiative, Verma said, “The objective of setting up the central registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. We have registered 166 leading institutions till now that provide data on loan disbursals.”
The registry became operational on March 31, 2011 and all transactions made on or after March 31 will have to be registered with Cersai.
NHB, which completed its accounting year on June 30, also released its RESIDEX index, which covers residential property prices in 15 cities. The index shows that majority of the cities have witnessed a price correction of 2-3 per cent.
Explaining the condition, Verma said, “The correction may be due to the interest rate hike and slackening demand or because prices have already peaked in some of the cities, which means they can either plateau or come down.'
National Housing Bank, a wholly-owned entity of Reserve Bank of India, in its report on the housing finance market in 2010 released on Friday, has said there is an oversupply condition in the residential property sector, and held out the possibility of a price correction if present trends continue.
The report “Trend and progress of housing in India” highlights important trends like growing competition in the primary housing finance market in terms of marketing and innovative products, and high food inflation which has led to low bank credit for most of 2010.
Launching the report, chairman and managing director of National Housing Bank, RV Verma, said, “The housing market is seeing an oversupply condition and if present trends continue, then a price correction is very near.”
Emphasising the need to improve accessibility and affordability of housing finance for the middle- and low-income groups, Verma said, “NHB is exploring the possibility of introducing a mortgage guarantee product in the country in collaboration with some international partners including IFC and ADB to improve accessibility and affordability of housing finance.”
The bank, which follows the July-June financial year, has fixed the refinancing disbursement target for 2011-12 at Rs 12,500 crore against Rs 11,723 crore last financial year.
“NHB’s disbursements in the last financial year reached an all-time high of Rs 11,723 crore against Rs 8,108 crore in 2009-10,” Verma said.
The report mentions that outstanding housing loans increased to Rs 1,53,188.73 crore at the end of March 2010 against Rs 1,26,823.50 crore in March 2009, a growth of 20.79 per cent year-on-year. Rural lending increased from 13.12 per cent in 2008-09 to 16.25 per cent in 2009-10.
Verma said the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (Cersai), a government company under Section 25 of the Companies Act, 1956, has been incorporated for the purpose of operating and maintaining the central registry of loan disbursements under the provisions of the SARFAESI Act, 2002.
Explaining the initiative, Verma said, “The objective of setting up the central registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. We have registered 166 leading institutions till now that provide data on loan disbursals.”
The registry became operational on March 31, 2011 and all transactions made on or after March 31 will have to be registered with Cersai.
NHB, which completed its accounting year on June 30, also released its RESIDEX index, which covers residential property prices in 15 cities. The index shows that majority of the cities have witnessed a price correction of 2-3 per cent.
Explaining the condition, Verma said, “The correction may be due to the interest rate hike and slackening demand or because prices have already peaked in some of the cities, which means they can either plateau or come down.'
Friday, May 20, 2011
Wednesday, May 18, 2011
Tuesday, May 3, 2011
Banking: Easier provisioning
Source :BS :Malini Bhupta / Mumbai April 26, 2011, 0:07 IST
Banks will benefit from the changed norms as credit costs will come down.
The Reserve Bank of India (RBI) unexpectedly relaxed the provisioning norms for non-performing loans (NPLs) last week.
Unlike the past, banks will now have to maintain a provisioning coverage ratio (PCR) of 70 per cent for gross NPLs as on September 30, 2010, after which they would be free to make provisions for incremental NPL formation, in accordance with their internal policies.
Banks will benefit from the changed norms as credit costs will come down.
The Reserve Bank of India (RBI) unexpectedly relaxed the provisioning norms for non-performing loans (NPLs) last week.
Unlike the past, banks will now have to maintain a provisioning coverage ratio (PCR) of 70 per cent for gross NPLs as on September 30, 2010, after which they would be free to make provisions for incremental NPL formation, in accordance with their internal policies.
Tuesday, April 5, 2011
Tech shift set to send bank NPAs soaring next month
NEW DELHI: Public sector banks are set to report a spurt in bad loans beginning next month when they shift to a new technology platform to calculate their non-performing assets (NPAs).
The platform, called the Core Banking System, automatically processes and updates transactions, helping identify NPAs on a daily basis, as against the current system where most transactions are managed manually, leaving scope for slippages.
Saturday, April 2, 2011
Central Registry of Securitisation Asset Reconstruction and Security Interest of India
The Central Registry Operationalised ; The Central Registry of Securitisation Asset Reconstruction and Security Interest of India, A Government Company, Incorporated
The Central Registry has become operational with effect from today i.e.31st March,2011.In his Budget speech for 2011-12, the Union Finance Minister Shri Pranab Mukherjee had announced that the Central Registry would be operationalised by March 31, 2011. The objective of setting-up the Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry Of Securitisation Asset Reconstruction And Security Interest Of India, a Government Company, licensed under Section 25 of the Companies Act, 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). The Central Registry shall be under the superintendence and direction of the Central Registrar. Notifications for establishment of the Registry to be operated and maintained by the above company and for the purpose of appointment of Central Registrar have been issued by the Government today i.e. 31st March, 2011.
Friday, March 25, 2011
It's tough being a guarantor
Few years before, Nitin Bhalla had stood a guarantor for his friend’s home loan. Now, he wants to opt out, but the bank is unwilling to play ball. This is despite his friend paying his equated monthly instalments (EMIs) regularly. The bank wants him to continue as a guarantor for the current dues.
“The guarantor cannot shirk his responsibility now. The bank had taken both his and the borrower’s creditworthiness while disbursing the loan,” says V N Kulkarni, chief counsellor, Abhay Credit Counselling.
Friday, March 18, 2011
The cost of closure
Dipta Joshi / Mumbai March 15, 2011, 0:43 IST
Try prepaying annually as foreclosing your loan comes at a cost.
Suman Chandok’s home loan tenure has been extended for the second time — since January this year. Fearing another extension in the increasing interest rate scenario, Chandok wants to pay-off his entire outstanding loan balance of Rs 12 lakh.
Not a bad idea, but prepaying his six-year-old loan will attract a penalty of three per cent on the outstanding loan amount. The amount works out to Rs 36,000.
“Since banks lose out on their interest income in foreclosure, it leads to an asset-liability mismatch. This is the reason why they charge a prepayment penalty,” says V N Kulkarni, chief counsellor, Abhay Credit Counselling.
Try prepaying annually as foreclosing your loan comes at a cost.
Suman Chandok’s home loan tenure has been extended for the second time — since January this year. Fearing another extension in the increasing interest rate scenario, Chandok wants to pay-off his entire outstanding loan balance of Rs 12 lakh.
Not a bad idea, but prepaying his six-year-old loan will attract a penalty of three per cent on the outstanding loan amount. The amount works out to Rs 36,000.
“Since banks lose out on their interest income in foreclosure, it leads to an asset-liability mismatch. This is the reason why they charge a prepayment penalty,” says V N Kulkarni, chief counsellor, Abhay Credit Counselling.
Monday, February 28, 2011
Economic Survey favours banking licences for industrial houses
NEW DELHI: Pitching for industrial houses wanting to set up banks, the Economic Survey today said that they should be given banking licences to promote the goal of financial inclusion.
"As regards allowing industrial houses, business houses and NBFCs to promote banks, they may be allowed full banking license with provision for avoiding conflict of interest issues," the 2010-11 Survey tabled in Parliament by Finance Minister Pranab Mukherjee said.
Economic survey 2011: Finally, some bonding with debt market
Short-Sell Govt Bonds
Development of bonds markets, which has been debated for nearly two decades, has got some attention. To develop the market, rules on short selling of government bonds have to be eased, says the Economic Survey . Bond holder rights need to be enhanced by making provisions in the Recovery Act, which is essential for investors to get attracted. The amendment of the Stamp Act to reduce the cost of transactions is also needed for transactions in bond markets to increase.
Development of bonds markets, which has been debated for nearly two decades, has got some attention. To develop the market, rules on short selling of government bonds have to be eased, says the Economic Survey . Bond holder rights need to be enhanced by making provisions in the Recovery Act, which is essential for investors to get attracted. The amendment of the Stamp Act to reduce the cost of transactions is also needed for transactions in bond markets to increase.
Friday, February 25, 2011
Tender Form II to participate in a Foreclosure Sale
Here is an another format for the Tender Form to participate in a Foreclosure Sale this one is simpler than the last one. Tender Sample 1
Thursday, February 3, 2011
How to participate in an Bank Auction ?
The first Question all of you ask yourself after visiting our site foreclosureindia.com is -
How do i participate in an auction?
So here is the Step by Step process of how the auction is conducted and what you have to do to participate in it:
Monday, January 17, 2011
Statistics for The First Year of Foreclosureindia.com
Foreclosureindia.com was started in early in January 2010 and these are the statistics for the first year on the data which has been collected by us and is freely available to all users.
Thursday, January 6, 2011
Defaulters dodge loan recovery law summons with High Court stay
Has the SARFAESI Act, arguably the most important means of recovery of bad loans, been losing its teeth in recent times?
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, acted as a powerful weapon for bankers to recover loans by auctioning the bad assets of the borrower in three months' time.
In comparison, the Debt Recovery Tribunal (DRT) and Lok Adalats take years to recover these loans.
According to Reserve Bank of India data, there has been a steady fall in the amount of bad loans recovered under SARFAESI Act, as a per cent of the total amount of bad loans involved under this channel — a trend seen between 2008-09 and 2009-10.
Stay from High Court
Mr A.K. Bansal, Executive Director, Indian Overseas Bank, said that big borrowers with outstandings of over Rs 10 crore, stall the bank's efforts in taking possession of assets under SARFAESI Act, by getting a stay from the High Court or the Debt Recovery Tribunal.
A senior General Manager of a public sector bank said that nine out of 10 borrowers, who have been issued notices under SARFAESI, take banks to DRT to buy time.
No civil court (with the exception of the High Court) has judiciary powers when it comes to SARFAESI Act (Section 34).
Under the Securitisation Act, banks should be able to recover their bad debt in three months' time (with a notice period of 60 days). However, due to a large number of cases pending with the judiciary, it takes close to a year or more before banks can take possession of the property for auction, said the General Manager.
Currently, Indian Bank has issued SARFAESI notices to about 10,000 bad loans amounting to Rs 1,000 crore.
Sluggish property market
Adding to the banks' woes is the sluggish nature of the property market in the last two years, due to which banks were unable to recover the loan amount from such auctions.
Link To Original Article : Click Here
The cartoon image has been taken from Google search.
Wednesday, November 3, 2010
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