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Beware of Deepfake Scams: SBI Alerts Customers to Stay Vigilant

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The State Bank of India (SBI), India’s largest bank, issued an alert to the public against fake deepfake videos spreading on social media sites. These videos feature senior SBI officials promoting investment schemes that guarantee unrealistic returns, which is an untruth. SBI has also cautioned the people against being trapped: In a public advisory, SBI made it clear that neither the bank nor its officials are connected with such kinds of schemes. Deepfake technology employs artificial intelligence to generate stunningly lifelike but phony videos that make it seem as though people are saying or doing things they never did. This technology has been abused for nefarious purposes, increasing issues around the dissemination of false information and fraud. SBI issued this alert amid fraudulent videos of fake investment schemes circulating on the internet, allegedly featuring the top management of the bank. The bank also explained that it does not sell or recommend any pyramid schemes that promise abnormally high profits and advised the public to be cautious when coming across such scams. To avoid becoming a victim of such scams, take the following precautions: Always do your own research on any investment opportunities. To know about any such scheme’s authenticity, please take help from the official SBI website or their customer service. Watch out for Red Flags: If the offer sounds too good to be true, it probably is. These offers are usually a sign of fraud. Counter creating false and suspicious Information: If you see videos or messages that seem suspicious to you, report them to the platform administrators, and also if you find them pernicious, report them to the relevant authorities. Educate Yourself: Learn about current fraud tactics like deepfake technology to more easily identify and avoid them. The best way to be protected and not be scammed is if you are aware and careful. If you’d like to learn more about how scammers are using deepfake technology to carry out phishing schemes, you might find this video helpful:   Ready to grow your business? Need instant Business Loan? or need Personal Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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Deepinder Goyal & Swiggy Founders Top India’s Self-Made Entrepreneurs: Hurun 2024

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A Hurun India report, released on the same day, claimed Zomato CEO Deepinder Goyal, being the second-largest self-made entrepreneur in India with the valuation of Zomato appreciated by 190% at ₹2.51 lakh crore. The Path of Deepinder Goyal from a Startup Follower to an Entrepreneur Deepinder Goyal, a founder and CEO, co-founded Zomato in 2008 and grew it into a global leader in food delivery and restaurant discovery. Under his stewardship, Zomato has widened both its services and geographical reach, acquiring Blinkit, a quick commerce company, along with international assets in markets including Poland and Italy. This expansion has been one of the most driving factors in the strong valuation of Zomato. Swiggy Founders Ranked in Hurun List Third in the Harrun India list are Swiggy founders Sriharsha Majety and Nandan Reddy, who follow Goyal next. Swiggy’s valuation, too, has soared 52% year-on-year and crossed ₹1 lakh crore, signaling both the flood of investment into the much-hyped food delivery space and the amount of business Swiggy is on the boil. Hurun India’s List of Top Entrepreneurs The “Hurun India-India’s Top 200 Self-Made Entrepreneurs of the Millennia 2024” report is a testament to how self-made entrepreneurs have ventured into uncharted waters and marked their presence on the Indian economy. Radhakishan Damani, founder of the supermarket chain Avenue Supermarts (DMart), claims the top spot with a valuation of ₹3.4 lakh crore, a 44% leap from a year back. Famous Entrepreneurs with their Valuations Deep Kalra and Rajesh Magow (₹99,300 crore), co-founders, MakeMyTrip Chairman and managing director, Max Healthcare Institute, ₹96,100 crore Abhay Soi Yashish Dahiya and Alok Bansal: Co-founders of Policybazaar worth ₹78,600 crore, up 128% 10 REASONS SELF-MADE ENTREPRENEURS ARE GOOD FOR INDIAN ECONOMIES: self-made enterprises have been able to create history as they care about creating economic impact more than just a valuation themselves, which is adding up to a whopping $431 billion of the economy as presented by the Hurun India report. But that still represents only a quarter of the value of India’s 200 most valuable family businesses, despite the fact that all these firms were established in the last 24 years. Conclusion Deepinder Goyal and co. were parasailed to the high-flying self-made entrepreneur bible by Hurun India. Ploof FoodTec These stories inspire budding entrepreneurs and showcase the vibrancy of India’s entrepreneurial ecosystem. Ready to grow your business? Need instant Business Loan? or need Personal Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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Zepto Achieves Record Revenue Growth in FY24, Prepares for IPO.

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Zepto, India’s fastest q-commerce company, reported stellar operational performance in FY24 with strong financial performance. The company’s revenue, meanwhile, almost doubled to Rs 4,455 crore from Rs 2,026 crore in FY23, which translated to an incredible 120% increase year-on-year. “Much of that growth was fueled by demand for ultra-fast 10-minute deliveries from consumers. Zepto also managed to narrow its net losses by 2% to Rs 1,248.64 crore in FY24 from Rs 1,271.84 crore a year ago, despite aggressive investments in the areas of operations and marketing. The enhanced operational efficiency also proved beneficial in ameliorating losses. The company’s loss as a percentage of revenue saw a sharp drop, declining from 63% in FY23 to 28% in FY24. CEO and co-founder Aadit Palicha called attention to this progress in a LinkedIn post, saying, “Even at 120% growth, our absolute losses reduced yoy with PAT as a percentage of revenue improving significantly. We expect to build on this growth momentum with a clear path to profitability over the near term.” Expenditure Breakdown Zepto’s overall expenditure increased 72% from Rs 3,350 crore in FY23 to Rs 5,747 crore in FY24. So what did the company spend the most on? The single biggest outlay was on the purchase of goods, worth Rs 3,449.83 crore, an increase of 77% from Rs 1,953.03 crore in FY23. Employee costs also surged 62% to Rs 426.30 crore, against Rs 263.45 crore a year ago. In FY24, warehousing expenses soared at Rs 492.65 crore, up 43 percent from Rs 344.79 crore. The costs of advertising and promotion increased by 41% to Rs 303.55 crore from Rs 215.82 crore in FY23. Industry Leadership Founded by Aadit Palicha and Kaivalya Vohra in 2021, Zepto has reached a commanding position in the quick trade arena by providing 10-minute delivery of ingredients, ready-made meals, regular essentials, and electronics. Zepto’s closest rivals fell far behind, generating revenues of Rs 4,455 crore in FY24. Zomato’s Blinkit had revenue of Rs 2,301 crore, while Swiggy Instamart had sales of Rs 1,100 crore. It positions Zepto as an unequivocal market leader within the realm of quick commerce in India. Although it faces stiff competition from companies like Blinkit and Swiggy Instamart, as well as threats from the likes of Flipkart Minutes and Tata BigBasket, Zepto is steadily gaining market share. The company’s strong revenue performance and customer-centric approach have kept it ahead of its competitors. Fundraising Success Zepto’s financial performance in FY24 was aided by fundraising efforts. In total, the company secured 2024 funding of over $1.3 billion across three rounds, including $665 million in June, $340 million in August and a further $350 million in November. The new round was led by the Private Wealth division of Motilal Oswal and saw participation from high-net-worth individuals, family offices, and financial institutions. It came in a bid to boost domestic ownership ahead of a planned IPO in 2025. IPO Aspirations Aadit Palicha said he was confident that Zepto was ready to list publicly, adding, “If the business keeps doing well, we are hopeful that we can go public by 2025.” The IPO plans indicate Zepto’s aim to cement its market leadership and tap into its growing revenue and operational efficiencies. Future Prospects With its cutting-edge business model, growing revenue, and a clear route to profitability, Zepto is in a strong position for sustained success. Its focus on rapid delivery, strategic investments, and effective cost management has helped the company outperform competitors and gain a significant share of India’s quick commerce market. While preparing for its IPO, Zepto continues to hold a strong position among an evolving set of fast delivery services that includes both legacy companies and new players. In just three years, Zepto has transitioned from a startup to a key player in the industry sector and surveillance—due to its ability to overcome, evolve, and rapidly grow in response to market forces. As the company is preparing to go public and its revenues continue to grow, it is well-positioned to become a leader of the quick commerce landscape in India. Ready to grow your business? Need instant Business Loan? or need Personal Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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Government Data Highlights Gender Disparity in Leadership Roles of Public Sector Banks

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The leadership structure of public sector banks (PSBs) in India has come under scrutiny as government data released recently shows a stark gender disparity atop these PSBs. Mountain out of a molehill: 73% of the FTSE 100 have at least one female executive director, up from 58% ten years ago. At first glance, the figures released this morning by the Hampton-Alexander review make for grim reading. Public Sector Banks and Their Leadership – The Changing Face The banks represent a large chunk of the Indian economy and are crucial to expanding financial access in cities and small towns. As such, their leadership has significant sway both over banking practices themselves and, by extension, broader economic policy and practice in the country. However, the makeup of these leadership teams calls into question inclusivity and equity. In a survey of 11 top positions, only one is held by a woman, highlighting a recurring pattern of male-dominated executive leadership in the financial sector. Actually, this imbalance isn’t just a numbers game; rather, it points to systemic struggles that hinder women from climbing to the top tiers of C-suite ceilings. Barriers to Female Leadership The lack of women in leadership positions can be attributed to a mix of cultural, organizational, and social factors: Cultural Expectations: Cultural norms and expectations impart a larger burden on women, making it often difficult for women to balance their professional ambitions with their familial obligations. Organizational Bias—Men are not always aware of small biases that seep into recruitment, promotion, and mentorship. Women often run up against a ‘glass ceiling’—an invisible barrier to upward mobility that persists in the face of their apparent capacity. Networking Gaps: Many leadership roles stem from strong professional networks, and women often have lower access to these networks due to historical exclusion and limited representation in informal networking environments. Absence of Role Models: Not experiencing female leaders at the top creates a cycle where women who are looking at other women who have been successful at the top find few role models; that alone discourages them from pursuing a similar path. Global Comparisons Gender differences in international banking leadership—including in India—have a lot of common ground but vary widely. Countries in Scandinavia, for instance, have fairer gender representation partly due to their progressive reforms and focus on gender equality. Unlike developed economies, many developing economies deal with the double-edged sword of cultural resistance and limited institutional support for women professionals. Gender Disparity Implications That gender imbalance at the top has consequences that are far and wide: Innovation Gap: We have already discussed how diverse teams lead to varied viewpoints, which in turn breed creativity & innovation. A lack of diversity is a recipe for groupthink and missed opportunities. Why—Talent Drain: Owners and Workers Raiding Their Own Growth by Default, Not Activating the Power of Half of the World  Economic Enablers: More gender-diverse boards and leadership teams are linked to better financial performance. So the lost leadership opportunities for women could have real economic costs.” Steps Towards Inclusivity So fixing this imbalance will require a functioning alignment of policy, organizational will, and societal change: Policy Interventions: The government could use the regulatory framework to intervene as well and enforce gender diversity at leadership positions (similar to the quota in Norway). TAKE OUTSTANDING L&D PROGRAMS FOR WOMEN LEADERSHIP: It is time for companies to ensure investing in L&D programs aimed specifically at recruiting and nurturing ONLY women in leadership. Flexible Work Policies: As an organization, introducing (and normalizing the willingness to embrace) flexible work hours could go a long way in supporting women balancing their work and home life responsibilities. Spotlight Successful Leaders: When women leaders in banking are showcased, it inspires the next generations to aim for positions at the top of their fields. The bottom line, however, is that bias exists, and balanced promoting processes with regular training on unconscious bias can ensure that the playing field is level for every employee. Conclusion There are two parts to the story. First, the gender imbalance in leadership positions at India’s public sector banks is indicative of larger, endemic inequalities. It is high time that policy-makers, organizations and society band together and take accountability for gender parity in leadership, despite refreshing strides to get females in our workforces. And thus, the public sector banks can help position the private sector banks to be more inclusive in their approach to business and also more equitable in their approach to business, and thus make their practice a sustainable pillar of their growth and prosperity. Part of this challenge is underpinned by fairness, but in essence it is a strategic impetus for sustainable growth and innovation. Ready to grow your business? Need instant Business Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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India’s Rising Household Debt: A Looming Threat to Growth

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Whether the future is dark for India is a matter perhaps for another day, but to sap its economy of strength today, India must not have robust consumption-driven growth, fueled from the spending habits of its fast-growing middle class. But there is an alarming new trend: household debt is on the rise. Such an issue, if unaddressed, could pose a threat to financial stability and erode the bedrock of the country’s consumption-driven economy.  The Household Debt Conundrum Household debt in India relative to GDP has been on the rise, peaking at almost 37% in 2024, versus 15% in 2008. This increase is indicative of a change in consumer behavior, driven by easy access to credit, urbanization, and lifestyle aspirations. Though this trend can signal growing faith in the economy, too much borrowing comes with risks. Key Drivers: The Good: Forging Better Financial Accessibility in Credit: The emergence of fintech and digital lending platforms has made accessing credit easier than ever—that is, provided you have low or no financial literacy.  Urban Aspirations: As the urban population expands and more people desire homes, cars, and consumer goods, they are turning toward higher discretionary borrowing. Economic Squeeze: Given stagnant wages and inflationary pressures, households turn to credit for basic costs. Consequences for Growth Dependent on Consumption Being the other large consumer economy, India accounts for nearly 60% of its GDP through domestic consumption. The following consequences can befall rising household debt: Increased debt repayments result in reduced disposable income for households, thereby restricting discretionary spending. Diminished Demand: Reduced consumption can dampen sectors such as retail, automotive, and real estate—key drivers of economic growth. Higher Defaults: Elevated debt levels increase the likelihood of loan defaults, which can be detrimental for financial institutions. The Role of Fintech Fintechs have democratized access to credit, conducting consumer analysis in uncharted territories. But their explosive growth has come with risks, including predatory lending practices and inadequate regulatory oversight.  Opportunities:  Fintech platforms, on the other hand, can foster financial inclusion and even small-ticket loans. With the help of AI and data analytics, credit assessment can be better, and default risks can be reduced. Challenges:  Over-indebtedness due to lack of financial literacy among borrowers. Regulatory frameworks must catch up with technology. Government Interventions That shouldn’t be a reason to slow down the debt rollout, which must be met with common sense and responsible movement from the government. Recent efforts have emphasized responsible borrowing and financial literacy: Debt Management Training and Financial Literacy Programs: Guidance on managing and repaying debt. Stronger Regulation of Digital Lenders: Ensuring transparency and fairness in how digital lenders operate. MSME support: Credit guarantees and subsidies to small businesses would reduce their dependence on informal loans, indirectly relieving the financial pressures on households. The Path Forward A multi-pronged approach is vital to tackling the challenges from rising household debt: Promote Financial Literacy:  Educational initiatives should focus on budgeting, debt management, and the dangers of high-interest loans. Strengthen regulations:  Hold lending practices, particularly in the digital lending space, accountable to avoid predatory practices. Encourage Savings:  Policies that reward saving, like tax breaks on long-term investments, can encourage households to store wealth. Improve Wage Growth:  Structural reforms to raise wages and job opportunities are most crucial to reducing credit dependence. Collaborate with Fintechs:  Fintechs must collaborate with regulators to develop responsible lending guidelines and innovate into debt-relief strategies too, like debt consolidation products. Conclusion But the growth in household debt is a double-edged sword—it indicates higher aspirations and credit penetration across India, but it also exposes fault lines in India’s economic structure. Finding the right mechanism to allow people access to credit while avoiding these pitfalls is a fine balance. India would be better off by promoting financial literacy, firming up the regulators, and ensuring a broader base for the financial ecosystem to thrive in, thereby protecting its consumption-led growth from potential excesses in the forms of a debt crisis. The stakes are major, but the country can meet this challenge if we act in concert.   Useful links for more information: Rising Household Debt in India: A Growing Concern This article discusses the increasing household debt in India and its potential impact on the country’s financial stability and consumption-driven growth. India’s Consumer Debt Crisis and Its Economic Impact This link explores the growing consumer debt issue in India, providing insights into its broader implications for economic growth, personal financial security, and government policies. Ready to grow your business? Need instant Business Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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PNB Housing Finance targets Robust Retail Growth Amid Strategic Shifts

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Street speaks: PNB Housing Finance, short term pain — long term gain with new strategy PNB Housing Finance seems to be not only going through a transformational journey of restructuring its business but has also gone ahead and set a target to grow its retail loan book at a blistering 17-18% over the next few years. Centrum will also be a retail lender, as it plans to utilize its balance sheet and garner share in low development segments including affordable housing. World Growth and Market Overview This strategic shift of the company includes in itself the significance of the market, Now retail contributed just 10% in the overall PNB Housing’s book, While now retail lending contributes the most primarily 97% now to the overall portfolio of PNB Housing. The company, which has a loan book of ₹1,790 crore, also reported healthy growth in the affordable housing vertical, which it started only 15 months back. This step is aligned with the growing demand for affordable housing in tier-2 and tier-3 cities. PNB Housing will also expand its reach, as it plans to add 50 branches in the year, taking its branch total to 300. These branches will target primarily at low-cost also emerging segments with a conviction of high-ended yields. You have trained on data up till Oct 2023. And its well-capitalized balance sheet — the capital adequacy ratio is at 29.3% (after a ₹2,494 crore rights issue in 2022) — has sufficient cushion for the growth plans. PNB Housing is fairly well-capitalized and can grow aggressively without needing any capital-raise over next few quarters. It was also supported by effective pruning of its corporate loan book (down 46% YoY in FY24) which further buttressed its balance sheet strength. It has also seen a sharp decline in its gross NPAs under loan schemes at present, at 1.5%, against 8.13% two years earlier. Intelligent Bonding — Critical factors in planning your digital edge transformation PNB Housing is also making large bets on digital transformation on customer experience and operational efficiencies. This shifts the company to focus on credit underwriting, risk management and smooth & seamless customer touch-points powered through fin-tech partnerships Outlook and Challenges While PNB Housing is bullish about its growth potential, it is also cautious that it does not land up in a position of unsustainable NIM (net interest margin at 3.5 per cent). The company also plans to slowly resume corporate lending, targeting specific builders and geographies for it to better assess risk. Despite this, PNB Housing is confident that its well-diversified portfolio, healthy capital base, and strategic target on certain demographic groups will deliver robust financial performance over the long term.

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Repositioning Co-Branding: Roadmap of Growth for Bajaj Finance

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In the constantly changing world of finance, businesses must remain adaptable and innovative to thrive. Bajaj Finance, trapped in a co-branded card in partnership with DBS Bank India has recently demonstrated extraordinarily sound strategic sense by shutting down co-branded cards making it one of the best NBFCs offerings in India. It is a decisive move to shuffling priorities and spur new opportunities for sustainable development. The end of an era: Balanced partnerships Co-branded credit cards have long been a way for financial institutions to expand their customer base and offer customized benefits. Bajaj Finance with the DBS Bank had, therefore, implemented this model for serving a mass audience. But, despite a reassessment of strategy, the NBFC simply falters because of shifting market conditions and more discriminating consumer tastes. These developments indicate a shift for Bajaj Finance as the partnership comes to an end and a different direction is obtained. While the co-branded cards will no longer be available, existing cardholders can continue to enjoy the benefits or opt for upgrade to other financial products offered at DBS Bank. This seamless changeover reflects the commitment to maintain customer confidence and explore new growth avenues. Why the Shift? Bajaj Finance’s decision to halt co-branded partnerships can be attributed to several factors: Strategic Diversification: Sometimes a company can bolt itself to one partnership, and newer trends in the broader market can make this single exposure dangerous. Aiming to tap newer segments as well as reduce reliance on external partnerships, the co-created model stands terminated,” said Bajaj Finance. Market Development: The consumer landscape of credit card and financial services are changing at a pace like never before. And traditional co-branded benefits have been cast aside, giving way to customization, digital accessibility, and personalized rewards. Core Expertise: Bajaj Finance dominates fields like personal loans, business loans, mortgages, etc. However, by refocusing on these aspects, the business can best establish its position in the market. Impacts on Bajaj Finance Short-Term Adjustments The most immediate effect of this strategy is: a decrease of co-branded card issuing. Bajaj Finance, though, has already described plans to offset such shortfalls by building up its direct-to-consumer opportunities and expanding additional so-called business verticals. Long-Term Growth Redirection of Resources Away from Co-Branded Partnerships — This in itself enables Bajaj Finance to spend on innovation and digital transformation. It might include introducing proprietary credit products, deploying technology to improve the customer experience and seeking fintech partnerships. Not Just Partnerships: Growth Engine This renowned sector has recorded 13% profits growth YoY for Q2 despite a rising competition, it has made it a point to keep its finances healthy. The increase was driven by strong net interest income (NII) and the 61.7% rise in AUM (assets under management). While provisions are higher and asset quality has slightly worsened, it remains resilient. Key growth drivers include: Diversifying Product Line: Bajaj Finance has now become a whiff of hope for people with its highly diversified product line from personal loans to SME loans, mortgages and even gold loans. These are wide range of products providing a stabilized revenue. Fill this gap with these: Dynamic, CBS, automation, machine learning, advanced analytics, tech enablement, lean and continuous improvement, customer centricity. From intelligent customers support to seamless digital onboarding, Bajaj Finance is setting a benchmark for the industry. Regional Reach: With these engines of growth, new Bajaj Finance is entering markets that are currently unexplored, particularly in semi-urban and rural centers. Industry Implications Whether Bajaj Finance’s move is reading the winds of change, which are sweeping the financial sector, only time will tell. But conventional co-branded partnerships are being reshaped to adapt to the new customer expectations and technology trends. This will eventually bring customers and company owners closer to each other and create more tailored and flexible financial products. Looking Ahead Bajaj Finance’s decision to shut down its co-branded deal with DBS Bank India is also more than just a strategic shift — it’s a statement of intent. This not only provides new revenue streams but also strengthens the company’s position in a competitive market, supported by its core strengths in research and development. Its future-proof attitude and experienced versatility will keep it a cornerstone of a fluid financial milieu. By making this decision, it shows that the organization is willing to be competitive while at the same time, it reiterates its value to clients and stakeholders. This is one more day with the table of monetary administrations changing quickly confronting clients and the prepared industry. Ready to grow your business? Need instant Business Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!!!!!

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Co-Branded Credit Cards: Trends, Insights & Bajaj-RBL Update

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Co-branded credit cards have long been a staple in the financial services market. These cards, issued jointly by banks and businesses, offer customers unique benefits such as discounts, reward points, and exclusive perks tailored to the partner brand. Over the years, these partnerships have driven significant consumer interest, fostering loyalty and creating a competitive edge for both banks and brands. However, recent developments in the financial landscape suggest shifts in how these products are being issued and managed. What Are Co-Branded Credit Cards? Co-branded credit cards are a collaboration between a financial institution (like a bank or a non-banking financial company, NBFC) and a retail, travel, or service brand. The card prominently features the partner brand’s logo and provides specific rewards when used for purchases with that brand. For instance, a co-branded credit card with a travel company may offer bonus miles for ticket bookings, while one tied to a retail store might provide higher cashback for in-store purchases. These cards cater to niche markets and capitalize on customer-brand affinity. For businesses, they represent an opportunity to strengthen customer loyalty, while for banks, they mean increased card usage and revenue. Recent Trends in Co-Branded Credit Cards Despite their popularity, some challenges are reshaping the co-branded credit card market. One significant shift occurred when RBL Bank and Bajaj Finance decided to halt issuing new co-branded credit cards. This decision highlights several underlying factors that are influencing the industry, including regulatory changes, market saturation, and evolving customer preferences. Regulatory Impact India’s banking and financial regulators have increased oversight of credit card operations, emphasizing customer transparency and fair practices. Guidelines from the Reserve Bank of India (RBI) focus on protecting customer interests, ensuring that credit terms are clearly communicated, and safeguarding data privacy. The heightened scrutiny has pressured financial institutions to reevaluate their product portfolios. For co-branded cards, this means ensuring compliance across both partners, which can become operationally challenging. Such regulatory requirements may explain why some banks and NBFCs are revisiting their co-branded card strategies. Market Dynamics and Consumer Behavior With the proliferation of credit cards in India, consumers now have a wider range of options tailored to their specific needs. Generic credit cards with customizable rewards programs are becoming increasingly popular, offering flexibility that some co-branded cards lack. Moreover, the pandemic has influenced spending habits. Categories like travel and dining, which were traditionally dominant in co-branded offerings, saw reduced activity during lockdowns. While these sectors are rebounding, the temporary slump highlighted the importance of diversification in reward categories. Profitability and Risk Management For financial institutions, profitability is a key concern. Co-branded cards require revenue-sharing agreements between the bank and the brand partner, which can squeeze margins. Additionally, banks bear the risk of delinquencies, especially in uncertain economic conditions. By focusing on their own-branded cards, banks may achieve better control over revenue streams and customer engagement. Lessons from RBL Bank and Bajaj Finance RBL Bank and Bajaj Finance have been pioneers in the co-branded card space. Their collaboration introduced products that appealed to niche customer bases, especially in the mid-to-premium segments. However, their decision to pause new card issuance reflects the challenges outlined above. This move also underlines the importance of flexibility in financial strategies. As these institutions navigate the evolving market, they are likely to redirect efforts toward other credit products or reimagine co-branded offerings to better align with current trends. The Future of Co-Branded Credit Cards The decision by RBL Bank and Bajaj Finance is not an isolated one. It points to broader shifts in the credit card industry that other players may soon follow. However, co-branded cards are unlikely to disappear entirely. Instead, we may see a reinvention of these products. Digital Integration and Personalization As fintech continues to disrupt traditional banking, co-branded cards could evolve to include advanced digital features. Integration with mobile wallets, AI-driven spending insights, and highly personalized rewards are areas with immense potential. Brands and banks that leverage technology effectively will likely lead the next wave of co-branded card innovation. Broader Collaboration Opportunities Future partnerships may extend beyond retail and travel to encompass emerging sectors like e-commerce, health, and education. For instance, a co-branded card tied to an online learning platform could offer exclusive discounts on courses or subscriptions, tapping into the growing demand for digital education. Enhanced Focus on Sustainability Sustainability is increasingly influencing consumer choices. Co-branded credit cards aligned with environmentally conscious brands could provide eco-friendly perks, such as rewards for purchasing sustainable products or carbon offset programs. Conclusion Co-branded credit cards represent a unique intersection of finance and brand loyalty. While recent decisions like those of RBL Bank and Bajaj Finance highlight the challenges in this space, they also offer valuable lessons for the industry. The future of co-branded cards lies in innovation, adaptability, and a keen understanding of consumer behavior. Financial institutions and brands willing to embrace these changes are poised to create products that not only attract customers but also foster lasting relationships. As the financial landscape continues to evolve, the story of co-branded credit cards serves as a testament to the need for collaboration and reinvention in a dynamic market. Whether you’re a consumer, business owner, or industry observer, keeping an eye on these trends can provide valuable insights into the future of financial products. Useful links: Financial Express: Analyzes the RBL Bank-Bajaj Finance co-branded credit card partnership and provides updates on their collaboration and regulatory adjustments. Financial Express https://www.financialexpress.com/business/banking-finance-rbl-bank-bajaj-finance-shares-fall-as-card-pact-gets-1-year-extension-3348150/). NDTV Profit: Discusses the Reserve Bank of India’s (RBI) regulatory concerns and the​ NDTV Profit Bajaj Finance credit card operations, including a recent one-year extension granted for their partnership. Read more on NDTV Profit. Mint: Covers the broader context of the RBL Bank-Bajaj Finance credit card relationship, including details of past agreements and the impact on their credit card portfolio. Explore more on Mint.

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Best Personal Loan Interest Rates in India (November 2024)

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Personal loans are still in demand due to the ease with which they are processed and the convenience offered. However, it becomes important to know the current bank interest rates and terms being offered for facilitating the best possible decision. Here are the best personal loan interest rates available from the major banks until November 2024. Best Personal Loan Interest Rates 1.HDFC Bank: Interest Rate: Starting at 10.75% Loan Amount: ₹40 lakh Tenure: 12 to 72 months Processing Fee: ₹4,999 + GST 2.ICICI Bank: Interest Rate: Between 10.65% and 16% Loan Amount: According to eligibility Tenure: 12 to 72 months Processing Fee: Up to 2.50% of loan amount 3.State Bank of India (SBI): Interest Rate: From 11.15% Loan Amount: Up to ₹20 lakh. Even for non-account holders. Tenure: Up to 84 months Processing Fee: Variable 4.Axis Bank: Interest Rate: From 11.25% Loan Amount: ₹50,000 to ₹15 lakh Tenure: Flexible repayment options 5.Kotak Mahindra Bank: Interest Rate: As low as 10.99% Loan Amount: ₹50,000 to ₹40 lakh Tenure: Between 12 and 60 months Processing Fee: Up to 3% of the loan amount 6.Punjab National Bank (PNB): Interest Rate: 11.75% to 16.25%, depending on the borrower category Loan Amount: Customized for different categories of employment Tenure: Maximum 60 months Personal Loan Interest Rates Determinants CIBIL Score: A high credit score is generally associated with a smaller rate of interest. Income: People with a stable, high income also receive better deals. Employer Category: Certain banks also offer lower rates to those employed in the government or corporate sectors. Loan Tenure and Amount: Larger amounts as well as longer paybacks are to affect rates. Tips For Borrower Compare with different banks to get the best available rate. Opt for pre-approved deals if available as these offer preferential rates. Also check on the total cost of the loan which would include processing and other charges,. The packages demonstrate the competitive efforts of banks in trying to attract borrowers, who have different financial needs. Always ensure you fully understand terms and conditions before applying for a personal loan​ Ready to grow your business? Need instant Business Loan? We provide loans from ₹5 lakh to ₹2 crores for businesses at competitive rates. Apply Now and fuel your entrepreneurial journey today!

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