India cenbank deputy urges NBFCs to bolster risk controls, board oversight
MUMBAI, April 10 (Reuters) - Indian non-bank finance firms must step up oversight of liquidity and credit risks while strengthening board-level controls, a central bank deputy governor said, warning that weak governance could amplify vulnerabilities during market stress or liquidity shocks.
"Asset-liability mismatches, nature and tenor of the funding sources, and concentration risks all need board-level oversight which should be ably supported by robust internal controls," Swaminathan J, said at a conference of NBFCs on March 28. The copy of the speech was uploaded on the central bank's website on Thursday.
NBFCs should not lose sight of fairness to the customer even as they pursue scale, speed, and profits, he added.
"Financial inclusion cannot be used as a pretext for financial exploitation," he added.
He also urged statutory auditors to closely monitor the adequacy and effectiveness of NBFCs' internal controls.
The deputy governor's comments come after IndusInd Bank (INBK.NS), opens new tab, the fifth largest Indian private bank, said last month it expects a 2.35% decline in its net worth as of December 2024 due to discrepancies in its derivative accounts found during an internal review.
IndusInd Bank's disclosure lapses have led to questions of governance, audit oversights and risk management policies of lenders.
Audit findings must lead to timely and meaningful corrective action, not remain confined to meeting minutes, Swaminathan said, urging close scrutiny of complex structures, derivatives, off-balance sheet items, related-party transactions, and provisioning policies.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
21 minutes ago
- Reuters
China's imports of major commodities hiccup in May
LAUNCESTON, Australia, June 9 (Reuters) - China's imports of major commodities lost momentum in May, with crude oil, coal, iron ore and copper all recording declines amid concerns about growth in the world's second-biggest economy. Only imports of natural gas showed any improvement, with May's 10.11 million metric tons slightly ahead of the 9.67 million in April, although they were still down 11% from a year earlier, according to customs data released on Tuesday. Crude oil arrivals dropped to 10.97 million barrels per day (bpd) in May, down 6.2% from April's 11.69 million bpd and also below the 12.1 million bpd recorded for March, which was the strongest month since August 2023. Iron ore imports slipped to 98.13 million tons in May from 103.14 million tons in April, and were also weaker than the 102.03 million from May last year. Imports of all grades of coal were 36.04 million tons in May, down 4.7% from April's 37.83 million tons and 17.8% weaker than the 42.82 million tons in May 2024. Unwrought copper imports were 427,000 tons in May, down 2.5% from the 438,000 tons in April and also below the 514,000 tons from the same month a year earlier. On the surface the decline in imports of major commodities looks ominous for China as the world's biggest buyer of natural resources faces an ongoing trade war with the United States and still sluggish growth at home, especially in the key residential construction sector. But there is always a risk of reading too much into monthly numbers, which can be quite volatile and are also often driven by price moves during the period when cargoes were arranged. Crude oil is a good example of this. China's imports were weak in January and February, with cargoes delivered in these two months having been bought against a backdrop of rising prices, with benchmark Brent futures rallying from early December to a peak of $82.63 a barrel on Jan. 15. But oil prices started sliding thereafter, with Brent dropping to a low of $58.40 a barrel by April 9. Therefore, the rebound in China's crude imports in March and April came amid a declining price trend when the cargoes would have been bought. However, May cargoes would have been arranged when prices were once again trending higher. It's also worth noting that China's imports of Russian and Iranian crude have also been volatile in recent months, dropping as new U.S. sanctions on vessels were imposed and then recovering as traders worked out ways around the measures. This pattern seems likely to have continued, with commodity analysts Kpler estimating China's imports of Iranian oil at 743,500 bpd in May, but also forecasting a sharp rise to 1.48 million bpd in June. Iron ore imports may also have been impacted by price moves, with the price rising modestly over April, the time when most May-arriving cargoes would have been booked. The Singapore Exchange contract reached a recent high of $101.80 a ton on May 14, and has since moderated to end at $96.26 on June 6. While the price moves are modest, the small decline may encourage some buying by China's steel mills, especially given the prevailing view that Beijing will launch new stimulus efforts in coming weeks to boost the economy. Copper imports are also likely reflecting dynamics on global markets rather than the domestic situation in China. China's imports have trended weaker and are now down 6.7% for the first five months of 2025 compared to the same period last year. But physical copper has been shifting to the United States as market players expect President Donald Trump to impose a tariff on imports of the industrial metal. U.S. demand has bolstered the premium of copper for delivery to the United States, and drawn metal away from China. While the London price has been volatile and driven by news reports on what Trump may or may not do, the trend has been to higher prices, with an increase from an April 9 low of $8,105 a ton to $9,701 in early Asian trade on Monday. Coal is the major commodity where China's domestic prices and supply have driven weakness in imports, with strong production and soft local prices cutting the need for imports. Seaborne thermal coal prices have dropped to four-year lows in response, and there are some early signs that demand is picking up, but it will likely take further declines to spark any meaningful interest in boosting imports. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. (The views expressed here are those of the author, a columnist for Reuters.)
Glasgow Times
44 minutes ago
- Glasgow Times
We have been working hard to become 'Glasgow's Best Takeaway'
Umair Vaseem, owner, says they are 'excited' to be one of the finalists. Umair Vaseem aand dad Mohammed (Image: GordonTerris_Herald&Times) He said: 'We give good service and good food quality so that's the main reason we've been nominated I think. 'It's a family-run business and we've been working hard on it.' The takeaway opened just over a year ago and is Umair's first in East Kilbride having previously owned business in Edinburgh. He said: 'I've been in this trade for 25 years. 'I serve Indian food, pizzas, kebabs and we've got a lot of desserts. 'The Indian kebab is a favourite, and then the specialities and curries.' Speciality dishes include durries such as makhani masala, masaledar and pardesi. (Image: GordonTerris_Herald&Times) Umair says their food quality is something that sets them apart from other takeaways in the area. He said: 'We don't compromise on quality. 'We have good quality food and good service.' The 40-year-old says winning Glasgow Times Best Takeaway would be great for the business. He said: 'I'll be happy if we win, it will help with the growth of my business as well. 'I've not been on the street long but people like the food.'
Reuters
4 hours ago
- Reuters
China's consumer prices extend decline for fourth month in May
BEIJING, June 9 (Reuters) - China's consumer prices fell for a fourth straight month in May while producer deflation deepened, as the economy faces headwinds from trade tensions and a prolonged housing downturn. The consumer price index dipped 0.1% last month from a year earlier, versus a 0.1% drop in April, National Bureau of Statistics data showed on Monday, slightly better than a Reuters poll forecast of a 0.2% decline. CPI slid 0.2% on a monthly basis, compared with a 0.1% increase in April, and matched economists' predictions of a 0.2% decline. The producer price index was down 3.3% in May from a year earlier, worse than a 2.7% decline in April and the deepest contraction in 22 months. That compared with an estimated 3.2% fall in a Reuters poll.
