NBFC Loans

The growth in education-loan assets under management of non-banking finance companies is projected to stay steady at 20 per cent this fiscal, with increasing diversification across study destinations offsetting the impact on demand for US-focused education amid policy uncertainties, a Crisil Ratings report said on Tuesday. Asset quality has been robust so far and is expected to stay stable, even as the share of the portfolio transitioning from moratorium to repayment has increased, the report said. NBFCs (non-banking finance companies) typically structure education loans with a moratorium period aligned to course tenure, it said. Repayment obligations, in the form of Equated Monthly Instalments (EMIs), are calibrated to borrowers' earning potential and which typically commence when the course is completed and the student gets employed, it said. Nevertheless, with a substantial portion of the book still under contractual moratorium, the portfolio's performance over a broader repayme

Industry experts suggest that while colending volumes among NBFCs are expected to grow, driven by operational synergies and flexible structures, banks will continue to favour direct assignment

The data showed that banks' credit increased by 12 per cent year-on-year last month, slower than the 16.6 per cent rise a year earlier

Banks experienced a 21 per cent drop in the volume of personal loans sanctioned, accompanied by a 30 per cent decline in loan value year-on-year, according to a new report

As the sector faces these multifaceted challenges, vigilant monitoring and proactive management will be key to sustaining its viability and support for underserved communities

Satisfactory monsoon, soft rates to support growth in H2

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

Home loans sanctions contract 2 per cent; consumer loans grow 30%

Net Interest Income reported 9 per cent growth to Rs 12,532 crore while other income was up 22% to Rs 5555 crore

The printing inks and chemicals specialist Hubergroup India, is engaging with ICICI Bank, HDFC Bank, Axis Bank, Tata Capital, and others to acquire businesses from its German parent company

NBFC reported 26% rise in new loans during the December quarter

NBFC says in filing it is making efforts to sell nearly 50% of its stressed assets

Growth in Semi-urban, rural areas holds up

The RBI norms on an increase in risk weights exclude bank loans to housing finance companies or bank loans backed by priority sector loans (PSL)

Here is the best of Business Standard's opinion pieces for today

Interconnectedness must be watched carefully

Finance Minister Nirmala Sitharaman on Thursday said NBFCs and small finance banks need to remain cautious while lending as suggested by the Reserve Bank. Speaking at 'DATE with Tech' event here, Sitharaman cautioned that NBFCs and small finance banks should respect the red line and should not go too far in their enthusiasm. "Enthusiasm is good but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later," she said. Reserve Bank Governor Shaktikanta Das on Wednesday had said the central bank's tougher stance on unsecured loans earlier this month is a "preemptive" move aimed at ensuring financial stability. Following a massive rise in unsecured lending and delinquencies, the Reserve Bank on November 16 tightened the norms for unsecured consumer credit, asking banks and NBFCs to assign a higher risk weight. As a result, it

The lending poses a risk for incremental nonperforming loans (NPLs). The increase in risk weights by the RBI is a prudent step, it said

A hike in risk weights may lead to higher interest rates and reduced access to credit for consumers as banks adjust lending practices to meet increased capital requirements

Loans likely to become dearer; marginal impact on bank's capital adequacy ratio