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TPG sells stake in Shriram Finance for Rs 1,400 cr, Piramal to follow suit

Shriram Finance last year became India's largest non-bank lender after merger of units

Shriram Finance jumps 7%, nears 52-week high on heavy volumes

Till 09:48 am; around 9.98 million shares, which represented 2.66 per cent of total equity of Shriram Finance have changed hands on the BSE, data shows

RBI imposes Rs 20 lakh fine on Manappuram Finance NBFC norms violation

The Reserve Bank has imposed a penalty of Rs 20 lakh on Manappuram Finance for non-compliance with certain provisions of the NBFC norms. This penalty on the Thrissur-based gold loan company, which by AUM is the second largest such pure-play lender, is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers, the central bank said on Friday. The Reserve Bank of India (RBI) conducted a statutory inspection of the company concerning its financial position as of March 2021, and an examination of the risk assessment report, inspection report, supervisory letter, and all related correspondence pertaining to the same, had revealed non-compliance with the aforesaid directions to the extent it did not classify certain gold loan accounts with over-dues of more than 90 days as non-performing assets. It also did not ensure maintenance of the mandated loan-to-value ratio in

Credit sanctions to pick up traction as base effect fades, say NBFCs

The last quarter of FY23 (January-March) showed normal business activity compared to the same period the year before, reflecting pent-up demand after the pandemic

UGRO Capital net profit rises two-fold at Rs 14 cr in March quarter

Technology-driven non-bank lender UGRO Capital on Monday reported a two-fold rise in its consolidated net profit at Rs 14 crore in the January-March 2023 quarter. The company had posted a net profit of Rs 6.1 crore in the corresponding quarter a year ago, UGRO Capital said in a statement. Its total income for Q4FY23 jumped 92 per cent to 217.2 crore in the fourth quarter of FY23 compared to the year-ago quarter. The company's asset under management (AUM) more than doubled and stood at Rs 6,081 crore as of March 23, up 105 per cent year on year. Its total income for the full fiscal was Rs 683.8 crore, which was 119 per cent higher from FY22. Shachindra Nath, vice chairman and managing director of UGRO Capital, said, "Despite broader challenges to the lending industry, UGRO Capital has successfully built an AUM of Rs 6,000-plus crore and with a monthly net disbursement of more than Rs 500 crore. Our increasing off book AUM of 40 per cent demonstrates that our credit scoring model an

Give banks an oversight over lending practices of NBFC borrowers: SBI MD

SBI's managing director C S Setty on Friday pitched for banks to have an oversight on lending practices of borrowers from the non-bank lenders' segment. Speaking at a conference organised by industry lobby grouping IMC, he said non-bank lenders should follow the same risk underwriting and credit monitoring principles as done by larger banks from whom they borrow money. He said a good proportion of banks' lending comprises lending to Non Banking Finance Companies (NBFCs) or Micro Finance Institutions (MFIs), and while the bank books may look clean from the outside, it may not be a proper representation of the incipient stress if any. "...the lending practices of these institutions which are borrowing from us, I think the banks have to have oversight on that," Setty told reporters, adding that the issue is "not serious". Banks which have access to low-cost deposits often get into on-lending arrangements with smaller entities like NBFCs who have a better reach, wherein the NBFCs execu

Piramal Enterprises loss widens to Rs 196 cr on dip in Shriram investment

Non-bank lender Piramal Enterprises on Friday reported a widening of loss to Rs 196 crore from the year-ago period's Rs 42 crore, driven by a dip in the value of its investments in Shriram Group. The company's chief executive Jairam Sridharan told reporters that if one were to exclude the mark-to-market impact of Rs 375 crore over the Shriram investments, the company's core operations would have been growing. The core net interest income came at Rs 1,128 crore, down 4 per cent from Rs 1,172 crore in the year-ago period. Sridharan said even though the lender's assets under management stayed broadly flat at over Rs 63,000 crore, it was able to achieve significant improvement on the loanbook diversification front, and retail and wholesale books are placed at even keel. This was made possible by a 49 per cent growth in retail assets, even as the wholesale book declined to Rs 29,000 crore from being at Rs 42,000 crore level in the year-ago period. Going forward, the lender will keep ..

Fintech firm BharatPe acquires controlling stake in NBFC Trillion Loans

BharatPe said it has also infused a substantial amount of investment into Trillion Loans to enable the NBFC to grow its loan book

Mahindra Finance to raise upto Rs 8,000 crore through debentures in FY24

The company continued to maintain a comfortable liquidity chest of about three months' requirement, according to the NBFC's filing with BSE

NBFC firm REC raises $750 million through issuance of green bonds

State-owned non-banking finance firm REC Ltd on Saturday said it has raised USD 750 million (about Rs 6,138 crore) through issuance of green bonds. The net proceeds from the issue of the bonds will be applied to finance, in whole or in part, the eligible green projects in accordance with the approvals granted by Reserve Bank of India from time to time and in accordance with the ECB guidelines, according to a statement. "REC Ltd has successfully raised USD 750 million through 5-year 144A/ RegS green bonds under its global medium-term programme of USD 7 billion," the statement said. As a frequent issuer in the market and given the relatively stable market backdrop last week, the REC decided to capitalise on the environment to carry out an intra-day execution post extensive investor roadshows spanning two weeks in different geographies covering Singapore, the UK, and the US, it stated. The issue marks the REC's return to the capital market since 2021, with the last 144A transaction in

NBFC Moneyboxx Finance secures Rs 20 cr term loan from Maanaveeya

NBFC Moneyboxx Finance on Friday said it has secured a Rs 20 crore term loan from Maanaveeya Development & Finance, and the funds will be used for onward lending to micro entrepreneurs. Maanaveeya is an Indian subsidiary of Oikocredit. Moneyboxx is supported by 24 lenders, including SBI, IDFC First Bank, DCB Bank, AU SFB, and has raised cumulative debt of close to Rs 400 crore. With planned equity raise and continuous support from lenders and co-lending partnerships, the company is targeting asset under management (AUM) of Rs 1,000 crore by 2023-24 from current AUM of Rs 290 crore as of February 2023, it said in a release. "The loan from Maanaveeya will help boost our efforts in fostering financial inclusion by addressing the unmet and growing need for credit in the Rs 1-10 lakh small business loan segment," said Deepak Aggarwal, Co-Founder, Moneyboxx. The BSE-listed NBFC focuses on impact financing by providing business loans to micro entrepreneurs in Tier-III cities and below. .

Shriram Finance aims to raise $2.44 bn in FY24 to fund growth: Official

The retail non-banking finance company (NBFC) aims to grow its assets under management (AUM) by 15% in fiscal 2024 to around 1.9 trillion rupees to 2 trillion rupees

Tata mulls merger of arm for exemption from RBI as NBFC upper layer tag

Legal sources said Tata Sons will have to submit audited financial data of each subsidiary and its step-down subsidiaries--about 1,300 firms in all--in order to seek exemption

Refresh the approach to growth, equity

Agricultural credit continues to be subsidised through an interest subvention scheme instead of converting these subsidies into cash transfers to farmers

Bajaj Finance net profit jumps 40% in Q3 to Rs 2,973 crore; AUM up 27%

Bajaj Finance Q3 result: The new loans booked during the quarter were highest ever at 7.84 million

Poonawalla Fincorp stock jumps over 6% on strong quarterly results

Shares of financial services company Poonawalla Fincorp on Tuesday jumped over 6 per cent in early trade after the firm reported a rise in net profit for the third quarter. The stock climbed 6.27 per cent to Rs 308.55 in morning trade on the BSE. On the NSE, it zoomed 6.17 per cent to Rs 308.75. In a regulatory filing on Monday, Poonawalla Fincorp reported 88 per jump in net profit to Rs 150 crore for the third quarter ended December 2022. The non-banking financial company (NBFC) focusing on consumer and MSME finance had reported a net profit of Rs 80 crore in the year-ago period. Total income in the quarter rose to Rs 519 crore as against Rs 394 crore a year ago, it said. Net Interest Margin of the company rose to 10.7 per cent, an improvement of 94 basis points.

No word from RBI yet on regulatory leeway for HDFC twins' merger

HDFC Bank let go of Rs 40,000 cr loans as pricing didn't match bond mkt rates

Dynasty Acquisition pares 2.14% stake in Shriram Finance for Rs 1,040 cr

The shares were sold at an average price of Rs 1,300 per piece, taking the transaction value to Rs 1,039.59 crore

RBI lifts ban on M&M Finance for outsourcing recovery, repossession agents

On September 22, the regulator barred Mahindra Finance from carrying out any recovery or repossession activity through outsourced agents

Shriram Finance gets $100 mn funding from ADB for inclusive financing

Money will be used improve the status of underserved communities in India, other objectives