Page 7 - Nbfc Sector

New RBI window for NBFCs unlikely to improve their credit: Report

The partial credit enhancement (PCE)facility by the Reserve Bank of India's (RBI) for non-bank lenders is unlikely to have the desired impact of increasing credit flow to the troubled sector, a report said Friday. On November 2, RBI had allowed banks to provide PCE for debt raised by non-deposit-taking systematically important non-banking financial companies (NBFCs) and housing finance companies (HFCs). "The issuance volumes for NBFCs/HFCs under the PCE framework are likely to remain muted," domestic rating agency Icra said in the note. Credit enhancement is a tool typically aimed at improving credit worthiness of a borrower, in this case the NBFCs. The RBI move came amid a strong pitch for many, including its central board members, to increase the credit supply to the troubled sector. NBFCs and HFCs are facing a crisis of confidence following the default by IL&FS since late-August, which led to its takeover by the government last month. This in turn led to a ...

An AQR for the NBFC sector?

Not now. For the time being it needs a credit line. If the sector stumbles, it will lead to a credit crunch and hit domestic consumption and growth

As NBFCs face a crisis, the government can not afford to stand aside

There are serious concerns over the effects of a credit freeze-up

RBI withdraws rule exceptions for NBFCs owned by govt

The decision will ensure both types of NBFCs stand on an equal footing on compliance with specific RBI rules

NBFC status to P2P places compliance burden; lending to go up: Industry

Another player i2ifunding said with this, borrowing and lending activities will gather pace

NBFCs' borrowings from banks up over 20 times in one year

Net borrowing in these NBFCs rose to Rs 74,000 crore from a mere Rs 3,600 crore in the previous 12 months