Risky financial institutions will have to pay much higher premium for the cover while the strong ones will be rewarded for their prudence and pay a lower premium.
Credit card spends grow at slow pace as Covid second wave hits sentiment
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Asset quality from the unsecured segment a big worry; banks have curtailed credit limits and also cut back on new customer additions
Agencies
Mumbai: Credit card spends in the country grew by only 7.8% in the year ended March 2021, down from a jump of 22.5% in FY20, a sign that discretionary spending continues to remain elusive.
Individual banks indicated spend growth has fallen further in April and May.
“We have seen a significant decline in spends in the last 45 days, largely due to the spread of the virus and strict local lockdowns enforced across states,” the retail head of a private sector lender said. “The worrying factor is that the quality of good assets has taken a hit in this (credit card) segment, and we will go slow on onboarding new clients.”
The index is now back to the level it was in mid-February when the government was touting its victory over the pandemic and the market was still high on the steroid shot provided by the Budget.
Punjab National Bank and PNB Housing Finance enter new brand agreement
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The existing brand arrangement dated December 7, 2009 will continue to govern use of PNB trademark until PNB’s shareholding in the housing finance company is 30% or more. Upon PNB’s shareholding falling below 30%, the new agreement dated May 24 will replace the existing agreement, the housing finance company said in a regulatory filing.
Agencies
PNB Housing Finance have entered into a fresh brand agreement, which gives PNB the right to withdraw its brand name from the mortgage lender.
PNB holds 33% in PNB Housing. The revised brand agreement raised doubts on whether a change in holding pattern is likely anytime soon.
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