Saravana Kumar, chief investment officer at LIC Mutual Fund tells Puneet Wadhwa that investors should focus on large-cap schemes in these uncertain times
A comprehensive and pragmatic view of the risk and finance functions is necessary
The ongoing liquidity crisis in NBFCs has "rattled" realty sector as this could hit fund inflows to developers as well as home buyers, and lead to slowdown in housing demand-supply, said a report by real estate consultant Anarock Thursday. The real estate industry might also witness consolidation because of liquidity crunch, he said. The NBFC sector is under crisis since last month when it came to light that IL&FS group defaulted on short-term loans. "The ongoing NBFC crisis has, for all intents and purposes, hijacked Indian real estate's growth story over the short to mid-term. It will not only freeze funds to the real estate sector but also impact private equity (PE) funds flowing into the sector," Anarock Chairman Anuj Puri said in a report. PE players would become extra cautious in lending to developers and prefer last-mile funding, meaning for projects nearing completion. "In the short term, funding for greenfield projects will cease to exist. This will inevitably impact new
India's central bank eased rules last week to help the nation's non-bank lenders access loans more easily
Selling now guarantees losses, and the only way to handle this would be to average down
Outstanding credit growth declined to 13.2% between FY15 and FY18 from 18.2% between FY08 and FY15
The RBI report said prices have been particularly tepid in the metros and Delhi
Repco Home Finance, DHFL, Indiabulls Housing Finance and Edelweiss Financial Services were down more than 5% on the BSE.
AnyTimeLoan.in has a minimum net owned fund of Rs 20 million
The total securitisation portfolio of NBFCs was Rs 836 billion on fiscal 17-18, down from about Rs 900 billion in 2016-17, according to data from Icra
Analysts expect growth, margins to come under pressure
The RBI will tighten norms for NBFCs given that many are becoming systemically important
The medium, small and micro enterprise (MSME) financiers and microfinance (MFI) sub-sectors saw 26 deals apiece during the period
At a time when the economy is under stress because of the elevated bad assets, any such crisis from the NBFCs will further worsen the functioning of financial system as is evident in the case of IL&FS
Analysts say the markets have been caught in a contagion of a sell-off in banking and NBFC segments
Analysts are warning that India's shadow banking sector could face a cash crunch after key lender IL&FS missed debt payments
Asset-liability management, ability to quickly pass of high cost of funds and recovery capacity in worst case scenario are key issues
With PSU Banks reeling under crisis, the NBFCs had a field day in the last 3-4 years
The general nervousness because of the IL&FS default will prevail in the system for now, says Naresh Takkar, Managing Director and group CEO of Icra
According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields too weighed on the sentiment.