Page 3 - Hfcs

Govt mulling more policy action for NBFCs, regulatory changes for markets

This comes after Finance Minister Nirmala Sitharaman interacted with country's top regulators at FSDX meeting on Thursday

Collapse of commercial papers volume puts debt schemes at risk: Ind-Ra

Generally, the daily volume is Rs 10-15,000 crore in CPs in the secondary market

Govt to provide one-time guarantee of Rs 10,000 cr for NBFC assets, bonds

This is an extension of its budget announcement, where it had said it would compensate them to the extent of 10% of the losses banks incur on their NBFC bond portfolio

SBI to grant moratorium to NBFCs on case-by-case basis amid Covid-19 crisis

Considers 25 fresh credit proposals from shadow banks

SMEs to gain maximum from Rs 1-trn RBI liquidity boost to NBFCs, HFCs

The latest measure has come as two of its most innovative liquidity measures worth Rs 2 trillion since February 6 did not elicit the desired effect

Covid-19 crisis: Each bank to decide on granting moratorium to NBFCs

However, there was no clarity on whether the finance companies that borrow from banks would get the option to delay payments to their lender banks.

Covid-19: Sensex posts biggest quarterly fall, Nifty's worst in 28 years

Meanwhile, foreign portfolio investors (FPIs) have pulled out net of Rs 55,007 crore (approx. $7.4 billion) from Indian equities in March 2020

NBFCs, HFCs may get 1 year extension for restructuring loans: Report

The move will bring NBFCs and HFCs at par with banks in treatment of loans given for restructuring of real estate projects without downgrading the asset classification

Budget 2020: Not a good time to bottom-fish HFC stocks, says fund manager

New tax regime may compound their growth pangs; shares didn't recover from post-Budget correction

Budget: Govt proposes credit guarantee on debt in crisis-hit NBFCs, HFCs

The government has proposed to provide credit guarantee for the NBFC sector that has been facing liquidity crisis since the burst of the IL&FS scam nearly one-and-a-half years ago. Besides, the asset-wise eligibility criterion to be admitted under the debt recovery process has been reduced, according to Budget documents. To address the liquidity constraints of non-banking financial companies (NBFCs) and housing finance companies (HFCs), the government proposed to set up a partial credit guarantee scheme for the sector after the Union Budget 2019-20. "To further this support of providing liquidity, a mechanism would be devised. The government will offer support by guaranteeing securities so floated," the Budget documents said. Pawan Singh, managing director and CEO, PTC India Financial Services, said, "The announcement of the government's intent to guarantee securities floated to provide liquidity for NBFCs is expected to help in tiding over the current liquidity crunch." The ...

NBFCs to see better loan growth in FY21: Tata Capital CEO Rajiv Sabharwal

Foreign money is coming into the market and because of stability in rupee the hedging cost is also lower

Housing Finance Companies growth to remain subdued: Care Ratings

Funding challenges and slow GDP growth continue to spoil the show

NBFC slowdown due to low demand and lack of market funding, says RBI

The cash crunch among robust NBFCs is mainly due to a financial support from market instruments, rather than from the lenders.

HFCs' share in realty loans doubles to Rs 2.01 trillion since 2016: RBI

Over the past four years, total financing to real estate companies nearly doubled to Rs 2.01 trillion, shows the FSR released on Friday

Shadow banking crisis: NBFCs' asset quality under stress as profit slips

In the first half of FY20, asset quality of the sector showed further deterioration with slight increase in GNPAs.

State-run banks lent Rs 4.14 trn to NBFCs, housing financiers in one year

As per RBI, the NBFC sector faced liquidity stress following default by a large NBFC on account of which stress was particularly felt in the third quarter of the fiscal 2018-19

Liquidity pressures faced by NBFCs, HFCs, to continue: Fitch Ratings

Liquidity pressures faced by the non-banking financial sector following the IL&FS failure are likely to continue though funding costs have come off the peak, Fitch Ratings said on Friday. "We view wholesale and housing finance companies (HFCs) as more vulnerable -- given their higher leverage, weaker asset-and-liability maturity (ALM) profiles and higher concentration risks. Large retail finance companies with well-managed ALM profiles should continue to access bank and capital markets funding. Further, funding diversification in the offshore markets by larger issuers would benefit their funding profiles," it said in its outlook for emerging market finance and leasing companies. Indian finance and leasing companies are likely to grow at a slower pace in 2020 than in prior years, amid weaker economic growth and liquidity constraints, it said. Fitch said its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure.

HC relief for SBI, other lenders in debt recovery from crisis-hit DHFL

The lenders, led by State Bank of India, Bank of Baroda and IDFC had moved the high court seeking a relief from an earlier order that restrained DHFL from making any payments to creditors

Icra sees FY20 bank credit growth declining to 8.5% from 13.3% last year

The recent changes in mutual funds regulations are likely to result in a decline in the volume of commercial paper outstanding by March 2020

In talks with investors for equity infusion: Reliance Home Finance

Reliance Home Finance Ltd (RHFL) on Friday said it is in discussion with several investors for equity infusion, amid tight financial conditions plaguing the industry for the past few months. Since the IL&FS episode, all categories of lenders in India, including banks, mutual funds have put an almost complete freeze on additional lending to home finance companies (HFCs) and non-banking financial companies (NBFCs), and have instead only been insisting upon reduction of existing borrowings, it said in a release. Over this entire period, lenders have been willing to only securitise existing asset polls of HFCs and NBFCs to provide resources for meeting debt servicing obligations, it said. These unprecedented actions lasting for more than 6 months have severely impacted the financial flexibility of almost all HFCs and NBFCs in the country including RHFL. The company has been affected by a timing mismatch with regard to the ongoing further securitisation or monetisation proposals with ..