Bank credit to NBFCs rises sharply as shadow lenders shift funding sources amid high bond yields, supported by regulatory easing and improved banking liquidity
India Ratings and Research on Thursday said the cost of funds for non-banking finance companies and housing finance companies could rise marginally over the medium term amid geopolitical tensions, uncertain macroeconomic conditions and the limited transmission of policy rate cuts by banks. India Ratings and Research (Ind-Ra) said that despite recent policy rate cuts, borrowing costs are unlikely to soften meaningfully due to weak transmission, higher deposit competition and cautious capital markets. It expects that changes in the funding mix, rather than liquidity stress, will define the sector's dynamics. In a statement, Ind-Ra said the expectation of a marginal increase in the cost of funds for non-banking finance companies (NBFCs) and housing finance companies (HFCs) over the near-to-medium term arises from wider spreads in bond markets due to geopolitical tensions, uncertain macroeconomic conditions and the limited transmission of policy rate cuts to bank lending rates. The age
RBI has exempted smaller NBFCs from registration and introduced a structured exit route, allowing eligible firms to apply for deregistration through its PRAVAAH portal
This trend suggests that lenders are prioritising credit discipline over growth, particularly in a macro environment marked by cautious lending
The association said that the investment round represents an industry commitment to building a regulated digital public infrastructure layer for consent-based financial data sharing
Threshold for 150% risk weight raised to ₹500 crore; draft norms' tougher proposals pared back
India's small business credit portfolio remains resilient at ₹47.8 lakh crore, though growth moderated amid a higher base, even as smaller-ticket loans gained share
In the near-term, the non-gold portfolio will continue to consolidate before resuming growth momentum in a calibrated manner from FY27 onwards, analysts at Axis Securities said in the Q3 result update
HDB Financial shares gain over 6 per cent after reporting over 40 per cent YoY jump in Q4 profit, aided by lower provisions and improving asset quality outlook
RBI's proposed SBR framework changes may significantly expand NBFC upper layer coverage, boosting asset share to nearly 70 per cent and strengthening systemic oversight
NBFCs are likely to report healthy Q4FY26 earnings on steady credit demand, though elevated funding costs and geopolitical risks may weigh on margins and asset quality
Only way out for the CIC is to get de-registered as an NBFC
Opens door for inclusion of state-owned NBFCs
CRISIL upgrades Shriram Finance to AAA and Sammaan Capital to AA+, citing improved credit profiles, strong capital buffers and strategic backing from IHC Group
CRISIL Ratings has upgraded its long-term rating to 'CRISIL AAA/CRISIL PPMLD AAA/Stable' and removed it from watch with positive implications, while reaffirming its 'CRISIL A1+' short-term rating
The non-banking finance company will issue bonds with maturities of two, three, five and 10 years
RBI plans to introduce a new framework to classify NBFCs into upper, middle and lower layers, replacing the current scale-based regulation system
RBI allows NBFCs, corporates and AIFIs to participate in term money market to deepen liquidity, improve price discovery and strengthen policy transmission
NBFCs see early warning signs in MSME portfolios as supply disruptions and rising input costs linked to the West Asia conflict strain cash flows and push up early-stage delinquencies
IHC to become promoter via Avenir Investment with 63.3 per cent stake post open offer; lender plans expansion beyond mortgages, scaling products, branches and customer base