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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The public sector lender appears to have—among other things—issued cards to customers who never asked for them, an internal audit reveals.
Editor's note: Bengaluru-based Canara Bank wants to start a credit card subsidiary. With a base of 923,000 outstanding credit cards—second only to the State Bank of India among public sector lenders—it is well placed to do so. The launch of a separate unit to handle the credit card business would be the cherry on the cake for the bank’s CEO and managing director, Lingam Venkat Prabhakar, whose term ends in December. After all, it was under him that Canara Bank, in April 2020, took on the operations of Syndicate Bank—making it the fourth largest public sector bank in the country. While the merger has not exactly lived up to its billing—we flagged the friction between the Canara Bank cadre and the erstwhile Syndicate Bank cadre after the merger—the bank is now battling another major issue: massive procedural lapses in the issue of credit cards to customers. These range from missing customer applications for cards to missing credit information reports on credit card holders. All of which put the bank in clear contravention of the Reserve Bank of India’s norms for issuing credit …
The public sector lender appears to have—among other things—issued cards to customers who never asked for them, an internal audit reveals.
Editor's note: Bengaluru-based Canara Bank wants to start a credit card subsidiary. With a base of 923,000 outstanding credit cards—second only to the State Bank of India among public sector lenders—it is well placed to do so. The launch of a separate unit to handle the credit card business would be the cherry on the cake for the bank’s CEO and managing director, Lingam Venkat Prabhakar, whose term ends in December. After all, it was under him that Canara Bank, in April 2020, took on the operations of Syndicate Bank—making it the fourth largest public sector bank in the country. While the merger has not exactly lived up to its billing—we flagged the friction between the Canara Bank cadre and the erstwhile Syndicate Bank cadre after the merger—the bank is now battling another major issue: massive procedural lapses in the issue of credit cards to customers. These range from missing customer applications for cards to missing credit information reports on credit card holders. All of which put the bank in clear contravention of the Reserve Bank of India’s norms for issuing credit …
The newly listed insurer commands a premium valuation, but its latest ambition, if not done right, may prove to be a drag.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
The newly listed insurer commands a premium valuation, but its latest ambition, if not done right, may prove to be a drag.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
