RBI directs banks to tighten consumer lending, penalizes Axis and Manappuram Finance

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RBI directs banks to tighten consumer lending, penalizes Axis and Manappuram Finance
Credit: © Reuters.

MUMBAI - The Reserve Bank of India (RBI) has issued directives to banks and non-banking financial companies (NBFCs) to restrict consumer lending amid rising risk concerns. This move comes as part of the central bank's efforts to maintain financial stability in the country's banking sector. In enforcing its regulations, the RBI has penalized two prominent financial institutions for non-compliance with its guidelines.

Axis Bank (NS: AXBK ), a major private sector bank, and Manappuram Finance (NS: MNFL ), a leading NBFC, have faced penalties from the RBI for violating certain provisions. The specifics of these violations and the penalty amounts have not been disclosed. This enforcement action underscores the RBI's commitment to stringent oversight of the banking and finance sector.

In other financial news, several companies are making strategic business moves. SoftBank (TYO: 9984 ) is reportedly planning a $150 million block deal to sell off its stake in Delhivery (NS: DELH ), a logistics company. Meanwhile, Technocraft Industries has decided to halt production of Milange Yarn at its Murbad unit due to unspecified reasons.

Elpro International is continuing its investment strategy by incrementally acquiring shares of Jyothy Labs (NS: JYOI ) Ltd and Nestle (NS: NEST ) India. In real estate developments, Brigade Enterprises (NS: BRIG ) has teamed up with Krishna Priya Estates and Micro Labs on an ambitious ₹2,100 crore housing project situated in Bengaluru.

In the automotive sector, TVS Motor Company (NS: TVSM ) has secured a distribution deal with Emil Frey for its products in the European Union. This partnership will commence with the distribution of the TVS Apache RTR 310 motorcycle in France starting in 2024.

The steel industry saw JSW Steel (NS: JSTL ) withdrawing its application for the final mine closure plan of the Jajang Iron Ore Block in Odisha, indicating a change in the company's mining strategy or operations.

Banking sector updates include IDBI Bank (NS: IDBI )'s disinvestment process, which may extend beyond the initially targeted completion date of March 2024.

Energy sector advancements are marked by SJVN (NS: SJVN )'s agreement with Solar Energy Corporation of India for supplying 200 MW of wind power. Additionally, JSW Infrastructure has emerged as the successful bidder for a ₹4,119 crore greenfield port project at Keni in Karnataka.

Coromandel International has unveiled its new Coromandel Nanotechnology Center in Coimbatore, Tamil Nadu (NS: TNNP ), showcasing its commitment to innovation in agriculture. DCX Systems' board has approved a fundraising proposal worth Rs 500 crore to support its growth initiatives.

Lastly, Goa Carbon (NS: GOAC ) has resumed operations at its Paradeep unit in Odisha after a period of suspension for reasons not specified in this context.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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