Page 5 - Nbfc Crisis

Action on NBFCs to be based on RBI's June 7 norms on stressed assets: SBI

Lenders will take a call on their exposure to the stressed NBFC sector in light of the Reserve Bank's June 7 circular which has laid guidelines for resolution of bad loans, SBI Chairman Rajnish Kumar said Friday. Kumar, who met finance ministry officials here, also said there was no discussion on crisis-hit DHFL in the meeting. DHFL had an outstanding debt of around Rs 1 lakh crore at the end of December. Of that, 38 per cent are bank loans, with SBI having the highest exposure. DHFL is among the housing finance companies that were hit by the liquidity crisis following the series of defaults by IL&FS Group companies since August. "Resolution of any stressed assets either of NBFC or any other sector will be as per the June 7 guidelines of the RBI," Kumar told reporters here. After the Supreme Court quashed RBI's guidelines on stressed assets, released in February 2018, the central bank on June 7 came out with revised norms which gave more room to lenders for resolution of bad ...

NBFC crisis impacts Birla AMC Realty Fund's ability to exit 8 of 13 deals

Several of its investments are in Mumbai property market; fund is currently valued below its NAV

EPFO halts investment in private sector bonds due to NBFC crisis

At present, the EPFO is mandated to invest 20-45 % of its incremental funds in debt-related instruments

NBFCs face $15.8 bn of maturing debt amid cash crunch, credibility crisis

Refinancing the obligations poses a challenge as investor concerns flare amid mounting problems such as auditors quitting, repayment problems and allegations of embezzlement

NBFC cash crunch worsens; bond issuances at 7-month low of Rs 880 cr in May

RBI is unlikely to repeat a dollar swap but executives in NBFCs are expecting some kind of help from the central bank

RBI to beef up supervision of NBFCs to maintain financial stability: Das

Financial sector governance reforms top RBI agenda

More borrowers take the private placement route amid liquidity crunch

Three-month rolling average shows April fund-raising through the route is higher than last year

Top 3 HFCs struggle as liquidity tightens: should you buy their stocks?

Share prices of Dewan Housing, Indiabulls Housing, and PNB Housing have declined 30-80% in the past one year

RBI rules out credit line for NBFCs, discusses revised bad loan circular

The original 'resolution of stressed assets' framework created a huge rift between the government and the RBI, and perhaps led to the exit of Urjit Patel as governor

Flood of money in short-term debt schemes new headache for NBFCs

Systemic risk for mutual funds as well in case there are large-scale redemptions

Tata Capital eyes 25-30% credit growth in FY20 amid ongoing NBFC crisis

The company is now focusing on newer avenues to grow

More thoughts on the NBFC crisis

Resolving this crisis of confidence requires either more granular information or getting independent confirmation of asset quality

IL&FS row: 50 top NBFCs need Rs 700 bn in Nov to redeem commercial papers

As top 50 non-banking finance companies need Rs 95,000 crore to repay debts, of which Rs 70,000 crore are commercial papers maturing this month, and banks will have to lend more to the sector to avoid defaults, says a report. Since the IL&FS defaults, it can be noted that NBFCs and housing finance companies (HFCs) were facing a crisis of confidence, sending call money rates higher and overall liquidity tight. This forced RBI to open a special window for banks but denied the same to NBFCs and also announce Rs 36,000 crore of OMO purchase in October and Rs 40,000 crore in November, which has brought in some sanity to system. The crisis of confidence comes even as asset quality of NBFCs is largely steady. "As many as 50 large NBFCs have debt repayments worth Rs 95,000 crore due in November, of which, Rs 70,000 crore are commercial papers (CPs) maturing," said Krishnan Sitaraman, a senior director at the agency, adding some of them are well- placed to meet the debt ...

NBFCs may prove to be a drag on economic growth, warns DBS' economist

But this will come as a growth booster for banks, which for long have been ceding credit market share to NBFCs, said DBS' economist

Some learnings from the NBFC stress

The sector has been a market leader in terms of delivering shareholder returns. It is unlikely this trend will continue

Ensure there are no defaults by NBFCs, Arun Jaitley tells top PSBs

According to sources, executives from SBI, PNB, BoB, and three more banks briefed the finance minister through video conferencing on the liquidity crisis in NBFCs