After Twitter backlash HDFC Bank 'regrets' glitch
As HDFC Bank customers stormed Twitter with complaints that its online banking site and the app were not operational or working properly, the bank on Tuesday said it regretted the inconvenience to customers, and its experts were on the job to resolve the glitch.
 
"We apologise that the resolution of the technical glitch is taking more time than anticipated. Our experts are working round the clock. While some customers are able to transact using NetBanking and MobileBanking app, a few may still be facing intermittent issues," tweeted the 'HDFC Bank Cares'. 
 
"Needless to say this is not the experience we would like our customers to have and we sincerely regret the inconvenience," said another tweet.
 
Customers have faced issues while transacting and using the site and the mobile app since Monday and have vented their anguish on social media.
 
One Chandrakant Kumar tweeted: "More HDFC netbanking getting worst for a couple of days. Unable to do anything online. Fund transfer also not working."
 
Another person with the tweeter handle @abhiman55197755 wrote: "More I am still facing same problem with net banking please fix it #hdfcbankdown #hdfc bank care."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Shantanu Ambedkar

    1 week ago

    This is a real cause of concern particularly in this day and age when most banking and investment related transactions are done online. The message on the site blamed a very high level of customer activity for the site being inaccessible. That’s irresponsible on many levels. It could have implied some problem at the bank and therefore customers rushing to withdraw money. Admission of their own technical problems would be a fair and responsible response. The fact is that HDFC Bank, once a bank with the best online and tech systems has been incapable of handling scale and growth and has underinvested in tech. Also, it has made customer processes needlessly complicated out of a sense of arrogance and hubris. They had one major incident a few months ago but clearly the management either does not seem to have learnt it’s lessons or worse don’t care. Their moniker of the best bank in India has made them insulated from having to consider their customers. Also, their intense focus on quarterly earnings and targets means that there is no focus on other stakeholders, most importantly customers. Not that their shares have outperformed the other banks in the recent past. That should atleast teach them a lesson?!

    Nakul Kumar Reddy

    1 week ago

    HDFC bank commercial to the core,they want only money, nothing else they don't need anything.

    Deepak Narain

    1 week ago

    This Bank is a big disappointment. Their operatives are either moron or deliberately act so. We have been suffering at their hands for the last many months with no results. You may ask them anything and they continue to write the same irrelevant nonsense causing lots of frustration. All their levels of appeal are unresponsive and useless.

    P S SHANKAR

    1 week ago

    The HDFC Bank website is not accessible for NRIs too, for the past few days. This incident shows the callous nature of customer care of HDFC Bank and the fragility of its IT systems.

    NCLT admits RBI's plea for insolvency against DHFL
    The National Company Law Tribunal's (NCLT) Mumbai bench on Monday admitted the RBI's application for the initiation of insolvency proceedings against the cash-strapped Dewan Housing Finance Corporation Ltd (DHFL).
     
    The Reserve Bank of India had on Friday filed an application in the NCLT bench for initiation of the corporate insolvency resolution process. In a statement, the central bank had said that there would be a debt moratorium on DHFL as long as the insolvency process is on.
     
    The apex bank filed the application for initiation of corporate insolvency resolution process against DHFL under several clauses of Section 227 and Section 239 of the Insolvency and Bankruptcy Code, 2016 along with provisions under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) Rules, according to the statement.
     
    The RBI appointed a committee to advise the administrator of the private sector lender after superseding the company's board of directors and appointing R. Subramaniakumar as its administrator on November 20.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    naran Patel

    1 week ago

    Really I appreciated your quick actions. Thanks.

    Nakul Kumar Reddy

    1 week ago

    I will support you , file case on them

    MUDRA Loans: What Went Wrong?
    The concerns on the rising non-performing assets (NPAs) in Micro Units Development and Refinance Agency (MUDRA) loans have been red flagged by the regulator, Reserve Bank of India (RBI) starting with Dr Raghuram Rajan, followed by the current governor Shaktikanta Das and MK Jain, deputy governor of RBI.  This only demonstrates the seriousness of the issue.  
     
    The NPAs in MUDRA saw a steep jump of 126% in one year – an increase from Rs7,227crore in FY2018 to Rs16,481 crore in FY2019, with the number of infected accounts totalling 30.57 lakh. India Ratings and ICRA estimated the NPAs under MUDRA between 10-15% as compared to 5.39% in March 2018.
     
     Since the Vijay Mallya scam, surging corporate NPAs are now in the company of their less endowed MUDRA borrowers propped up by the government and so economy slowdown should have nothing to contribute to this sordid story.
     
    What went wrong with MUDRA loans?  
     
    Ever since the scheme has been flagged off in April 2015, the targets were not only set but closely driven, breathing down the necks of the banks by the ministry of finance, to emphasise the importance attached to the scheme.  Bankers have exhibited more than the required enthusiasm and competed with one another to achieve the targets to dwarf their peers before the Delhi bosses.  
     
    While massive numbers are to be achieved within set deadlines, it appears that the appraisal was given a go-by as hinted at by Mr Jain, the deputy governor of RBI, urging the banks to monitor the repayment capacity of borrowers before disbursement.  All the targets, which increased year after year - were achieved by not only the public sector banks (PSBs) but other participants too.  
     
    The total sanctions under MUDRA till March 2019 since inception stood at Rs8.92 lakh crore.   The speed at which these loans are sanctioned can be noticed from the fact that Rs18000 crore worth of sanctions were pushed during the last 8 days of FY2019 to achieve the target.  During FY2019 an amount of Rs970 crore was sanctioned per day by all MUDRA lending institutions together.  
     
    Coverage of these loans under the Credit Guarantee Fund for Micro Units (CGFMU) up to Rs10 lakh could be another reason for sloppy appraisal. It is amply clear that these are push loans without proper appraisal and due diligence of the borrower.  Informed sources say that bankers chose this route to ‘evergreen’ (a loan that does not require the principal amount to be paid off within a specified period of time) their small ticket loans!  
     
    The numbers reveal different facts, however.  Of the total sanctions, the new loan sanctions hovered around 26%, barring the first year of introduction when it stood at 36%.  Can we draw a conclusion that the renewals/existing loans accounted for a larger share probably owing to the evergreening process of existing loans with increased limits?  More than 70% of the loans are sanctioned under ‘Shishu’ (not exceeding Rs50,000), considered least risky in the portfolio.  
     
    While banks can finance up to Rs10 lakh under the scheme, they preferred to keep the average ticket size to less than Rs1 lakh.  To be more precise, the average ticket size of the MUDRA loan increased from Rs39,405 in FY 2016 to Rs52,739 in FY2018.  State wise disbursals also indicate unequal distribution that needs correction too.
     
    In a way it is a blessing in disguise because the slippages and NPA accretion could otherwise have been higher.  But the only issue that remains in such small ticket loans is the adequacy of finance and the resultant viability.    
     
    During the current fiscal 29 million loans were disbursed, amounting to Rs1.41 trillion, showing a slight slowing down, against Rs3 trillion in the previous fiscal. Not even 2% has been sanctioned to the manufacturing enterprises because that involves onsite verification and follow up.  
     
    The positive part of the story is employment creation.  As per an unpublished survey a total of 11.2 million new jobs were created in 2015-18, of which 5.1 million were of new entrepreneurs. If the government were not to push for targets, banks would not have touched this clientele with a barge pole. It is however doubtful whether, given a free hand, the banks would improve the quality of portfolio, since NPAs are seen surging ahead as everywhere else they had a free hand. . The banks’ eye on quality has much to do with their knowledge, skills and attitude. All the three seem to be at a low ebb.
     
    The JanDhan scheme, accompanied by savings and insurance, and MUDRA, led by credit with refinance and guarantee, are two schemes of the most acclaimed inclusive agenda of the NDA government. The micro-finance institutions (MFIs) and the small finance banks that also lent heavily along with the public sector banks (PSBs) in MUDRA realized that they did not have much to lose as the money to lend came from the refinance window while the post-disbursement losses are guaranteed. Since the funds to MUDRA are from the Union Budget, the losses arising from the scheme devolve on the taxpayer. 
     
    RBI would do well to commission a detailed study of the portfolio and take corrective measures to ensure that the inclusive agenda of the government would not get undermined and the taxpayer is saved of the undue burden of the scheme.
     
    (Dr B Yerram Raju is an economist and risk management specialist while Sitapati Sarma is a retired general manager of SBI and the present chief operating officer of the Telangana Industrial Health Clinic Ltd. The views are personal.)
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    COMMENTS

    Sandeep More

    1 week ago

    Probably the beneficiaries are expecting loan waivers, given that the political leaders keep on falling upon themselves to do the needful, that too very consistently. Most of the beneficiaries could be of the opinion that such loans are sanctioned so as to get an opportunity to waive them off at the right time.

    tanay

    1 week ago

    Which bank has the highest mudra loan npa?

    REPLY

    B. Yerram Raju

    In Reply to tanay 1 week ago

    SBI and PNB

    Ramesh Poapt

    1 week ago

    of of many big bang syndrome!

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