Page 7 - Nbfc

Banks, NBFCs must uphold standards with Fintechs: RBI Dy Governor D G Rao

This change could affect the degree of market concentration and competition, giving rise to new challenges

ABCL gains over 10% as Macquarie initiates coverage with 'outperform' call

In its note, Macquarie said ABCL's lending non-banking finance (NBFC), housing finance company (HFC), and life insurance portfolio makes it an attractive proposition

Avanse raises Rs 1,000 cr from investors led by Mubadala Investment Company

Avanse Financial Services, an education-focused non-banking financial company (NBFC), on Tuesday announced that it has raised primary capital of Rs 1,000 crore to fund business growth. This round of funding was led by Mubadala Investment Company (Mubadala), the Abu Dhabi-based investment company, with participation from Avendus PE Investment Advisors Private Ltd via its fund Avendus Future Leaders Fund II, the NBFC said in a statement. The fund infusion will enable Avanse to strengthen its position in the rapidly evolving education financing segment by focusing on creating unique customer experiences and achieving sustained profitable growth, it said. The company has also provided growth and working capital to Indian educational institutions. As of December 2023, the company's assets under management (AUM) stands at Rs 12,147 crore.

Hemendra Kothari's DSP group to enter NBFC space, awaits RBI approval

Kothari is chairman of DSP Asset Managers, an asset management company (AMC) with a wide range of active and passive funds managed across the risk-reward spectrum

PHF Leasing to hire 200 employees over next 2 quarters across sectors

PHF Leasing Ltd, a deposit accepting NBFC, on Tuesday said the company is targeting to hire another 200 people across sectors over the next two quarters, keeping up with its growth plans and new office openings. The Jalandhar-headquartered NBFC has over 400 employees. PHF Leasing is a category 'A' Deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India since 1998. "In the immediate future, we hope to increase our staff strength substantially and PHF will become a force to reckon with in our areas of operations. We hope to recruit around 200 people across all functions by September/October of this year," said Shalya Gupta, CEO, PHF Leasing Ltd. The company has clocked over 100 per cent growth over the last three years, by opening new segments, like loan against property and new geographies. The NBFC has presence in several states, including, Punjab, Haryana, Rajasthan, Delhi NCR, and Uttar Pradesh.

Fintechs lead small-ticket loans' volume with 77% market share: Study

On the value front, fintechs cornered 29 per cent of small ticket loans disbursed in FY18, which rose to 51 per cent in FY24 (till September 2023)

L&T Finance, L&T Infra Credit, 5 NBFCs surrender registration certificates

L&T Finance, L&T Infra Credit, and five other non-banking financial companies (NBFCs) have surrendered their certificates of registration to the Reserve Bank of India. Following this, the central bank cancelled their Certificate of Registration (CoR) as they ceased to be a legal entity after amalgamation, merger, dissolution or voluntary strike-off. In December last year, L&T Finance Holdings (LTFH) had announced the completion of merger of subsidiaries L&T Finance, L&T Infra Credit, and L&T Mutual Fund Trustee, with itself. The other five NBFCs which surrendered their CoR are Marudhar Food & Credit Ltd, Creative Intra Ltd, Jinvani Trading & Investment Company, Manjushree Fincap, and Shruti Financial Services. In another statement, the RBI said it has cancelled CoR of four NBFCs -- Nimisha Finance India, R.M.B. Finance Company, Suyash Finovest, and Kamdhar Leasing and Finance Ltd. These four companies cannot transact the business of a non-banking ...

Tata Sons can fetch Rs 7.8 trillion market valuation on listing: Report

A little-known equity market research firm has pegged Rs 7.8 lakh crore valuation for the Tata group's NBFC holding company Tata Sons on listing going by the current market cap of the group firms. Being an upper-layer non-banking finance company, Tata Sons has to go public over the next 18 months as per the RBI norms. Tata Sons could list within the next 1.5 years as the Reserve Bank classified Tata Sons as an upper-layer NBFC last year, which makes it mandatory for it to list itself by September 2025, Spark Capital said in a note on Tuesday. The report stated that the listing can lead to the simplification of the complicated group-holding structure of the group. Recent news reports indicated that the company can fetch a valuation of Rs 11 lakh crore and the IPO size will likely be around Rs 55,000 crore. We believe that 80 per cent of Tata Sons' holdings may not be monetisable but the process of restructuring can trigger a re-rating. "There are multiple levers of value available f

NBFC major Shriram Finance to replace agro chemicals firm UPL in Nifty50

Meanwhile, Adani Power, IRFC, Jio Financial Services, PFC and REC have got included in the Nifty Next 50 index

RBI should look favourably to allow NBFCs access deposits: Experts

At the Business Standard BFSI Insight Summit 2023, the chiefs shared their views during a panel discussion on 'Catch-22 - To be or Not To Be A Bank'

Bank of England builds 'proactive case' to regulate non-banking sector

A central banker said that one way to overcome this would be to use capital and liquidity rules to influence how banks, which central banks regulate, interact with non-banks

NBFC-MFIs post 80% growth in net profit at Rs 1,105 cr for Q3 FY24

High credit offtake; interest rate hikes boost bottomline

Paytm crisis: Non-bank lenders explore options for loan disbursal

While non-bank lenders have not terminated their contracts with Paytm, sources said that they have no visibility as to when they might be able to resume lending through the Paytm app

ED to probe Paytm Payments Bank if charges of fund siphoning found

The (RBI) on Wednesday ordered the payments bank unit of One 97 Communications, popularly known as Paytm, to stop accepting fresh deposits in its accounts or popular wallets from March

Mahindra Finance Q3 results: Net profit down 12% due to higher credit costs

The net profit of the company stood at Rs 629 crore in Q3 FY23. However, sequentially, the profit increased by 135 per cent from Rs 235 crore in Q2 FY24

Murugappa Group's finance firm Chola expects AUM growth of 20-25% in FY25

Company expects healthy growth in its key business of vehicle loans and new initiatives in lending to consumer and small enterprises

Vivifi India Finance raises $75 mn series B funding from US investor

The company had raised $6 million in its Series A round previously in the financial year 2021

L&T Finance Q3 results: Net profit jumps 41% to Rs 640 crore, NII up 8%

L&T Finance Holdings on Tuesday reported a 41 per cent jump in net profit to Rs 640 crore for the December quarter, driven by retail loan sales. The Mumbai-based Non-Banking Financial Company (NBFC) had earned a net profit of Rs 454 crore in the year-ago period. The Net Interest Income (NII) of the NBFC grew 8 per cent to Rs 1,833 crore as compared to Rs 1,693 crore in the same quarter in the previous year, L&T Finance Holdings Ltd said in a statement. The company's retail disbursements grew 25 per cent to Rs 14,531 crore. The company completed the merger of L&T Finance Ltd, L&T Infra Credit Ltd, and L&T Mutual Fund Trustee Ltd with L&T Finance Holdings Ltd in the third quarter, it said.

Nifty50 may see one change, Next50 seven in March rejig, shows data

The cutoff date for calculating the changes to various Nifty indices is January 31. The index provider typically announces the outcome of the rebalancing exercise during the second half of February

IIFL Finance net profit rises 29% to Rs 545 crore in December quarter

Non-bank lender IIFL Finance Wednesday reported a 29 per cent growth in net profit to Rs 545 crore for the December quarter on higher loan sales and resultant interest income, cushioning the impact of higher regulatory charges. Overall loan growth jumped 34 per cent to Rs 77,444 crore, led by its key products like gold and home loans, which grew 35 per cent and 25 per cent to Rs 24,692 crore and Rs 25,519 crore, respectively. Microfinance grew higher at 54 per cent to Rs 12,090 crore, digital loans soared 96 per cent to Rs 3,905 crore, and loans against property jumped 27 per cent to Rs 7,862 crore, the company said in a statement. Construction and real estate books stood at Rs 2,889 crore. Its total income grew 28 per cent to Rs 1,687.5 crore, the company added. The asset quality improved overall, with the gross non-performing assets ratio declining to 1.7 in the reporting period from 2.1 per cent and the net non-performing assets ratio declining to 0.9 from 1.1, said Nirmal Jain,