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Capital Group offloads NBFC Shriram Finance's shares for Rs 884 crore

US-based financial services company Capital Group on Wednesday offloaded shares of NBFC Shriram Finance for Rs 884 crore through open market transactions. Capital Group through its investment vehicles SmallCap World Fund Inc and New World Fund Inc sold the shares of Shriram Finance on the BSE. According to the bulk deal data available with the BSE, SmallCap World Fund Inc offloaded 20,26,102 shares and New World Fund Inc disposed of 26,77,660 shares of Shriram Finance in two tranches. The shares were sold at an average price of Rs 1,880.28, taking the combined transaction value to Rs 884.43 crore. Details of the buyers could not ascertained. Shares of Shriram Finance fell 1.64 per cent to close at Rs 1880.70 apiece on the BSE.

Motilal Oswal MF buys Jio Financial Services' shares worth Rs 754 cr

Motilal Oswal Mutual Fund on Friday acquired 3.72 crore shares of Jio Financial Services, the demerged non-banking financial services unit of the Mukesh Ambani-led Reliance group, for Rs 754 crore through an open market transaction. According to the bulk deal data available with the NSE, Motilal Oswal Mutual Fund bought 3,72,00,000 shares, amounting to a 0.6 per cent stake in Jio Financial Services. The shares were purchased at an average price of Rs 202.80 apiece, taking the transaction value to Rs 754.41 crore. Shares of Jio Financial Services jumped 3.82 per cent to close at Rs 221.60 apiece on the NSE. Jio Financial Services Ltd (JFSL) listed on the stock exchanges on August 21. On Friday, the market capitalisation of the financial services company stood close to Rs 1.35 lakh crore on the BSE. In a separate transaction on NSE, Ascent Investment Holdings Pte divested a 3.7 per cent stake in Amber Enterprises India for Rs 353 crore through an open market transaction. Amber ...

RBI governor Shaktikanta Das asks NBFCs to strengthen governance standards

Reserve Bank Governor Shaktikanta Das on Friday asked non-banking financial companies (NBFCs), including housing finance companies, to strengthen governance standards and assurance mechanisms. The governor held a meeting with MD & CEOs of select large NBFCs. Government NBFCs and housing finance companies (HFCs) also participated in the meeting, the RBI said in a statement. These entities constitute nearly 50 per cent of the total assets of all NBFCs, including HFCs. Acknowledging the important role played by the sector in delivering credit to the unbanked and underserved areas, Das advised that NBFCs and HFCs need to remain alert to avoid any complacency during good times. "The governor highlighted the need for further strengthening the governance standards and assurance mechanisms viz. compliance, risk management and internal audit in these entities," the central bank said. Discussions were also held on diversifying the resources for NBFCs and HFCs to contain the increasing ...

NBFCs, IT sector biggest draw for equity mutual funds in July, shows data

MFs sold a net of Rs 5,600 crore worth of industrial sector stocks in the April-July period

Banks' lending to NBFCs soars 35% to Rs 14.2 trn in June: Care ratings

Banks' lending to non-banking finance companies (NBFCs) rose by 35.1 per cent to Rs 14.2 lakh crore in June, a report said. Credit exposure of banks to NBFCs rose by a robust 35.1 per cent on-year to Rs 14.2 lakh crore in June, indicating non-banking finance firms' decreased reliance on international borrowings. This also pushed up NBFCs' share in overall credit from 8.5 per cent in June 2022 to 9.9 per cent in the reporting month, according to Sanjay Agarwal, a senior director with Care Ratings. However, the report noted that the merger of HDFC with HDFC Bank, effective July 1, will lead to a reduction in the share and also the exposure of banks to NBFCs, as HDFC's bank borrowings will undergo a temporary reclassification, resulting in a shift of exposure to HDFC Bank. Meanwhile, mutual funds' debt exposure to NBFCs, including through commercial papers (CPs) and corporate debt, also increased 14.5 per cent to Rs 1.62 lakh crore in June, it said. According to the report, MF exposur

Padmaja Reddy's Keertana Finserv pegs AUM at Rs 3,000 cr by March 2025

Approaching RBI for NBFC-MFI license

Vivriti Capital to raise Rs 500 cr via non-convertible debentures on Aug 18

The NCDs will have five options with different tenures and interest payout options

Wockhardt says NBFC Guardian Finance wrongfully invoked 2 mn shares

Some members of the promoter group had pledged certain shares of Wockhardt with Guardian Finance to avail loan

Jio Financial Services: India's biggest demerger in the value terms

According to Reliance Strategic Investments annual report for FY22, it had other long-term investments worth around Rs 181 crore

Wage bill of listed pvt. companies up 17% at Rs 11.5 trn in FY23: Report

The rising trajectory of private corporate wage bill appears structural, having grown from around 9 per cent of GDP in FY12 to around 13 per cent in FY22

Navi Finserv to raise Rs 500 cr debt via non-convertible debentures

Navi Finserv, the NBFC arm of Navi Technologies, on Monday hit the debt market with a plan to raise up to Rs 500 crore through a public issue of non-convertible debentures. The issue will close on July 21, the Bengaluru-based company said in a statement. The issue offers five series of investment options with tenures of 18, 27 and 36 months with yields ranging from 10.18 per cent to 11.01 per cent. There is an option of coupon payments monthly or annually, barring the third and fifth series for which payments will be made every year. Sachin Bansal, cofounder of the Navi Group, said this was the company's second public debt issue meant to further diversify the borrowings profile.

Poonawalla Fincorp's AUM grows 41% YoY in Q1FY24 to at Rs 17,770 crore

Sequentially, the AUM grew by 10% over the March 2023 quarter

CreditAccess Grameen syndicates social loan facility of up to $200 mn

CreditAccess Grameen, Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), on Tuesday said it has signed a historic syndicated social loan facility of up to USD 200 million (about Rs 1,640 crore). This will qualify as External Commercial Borrowing (ECB) under the automatic route of the RBI, the company said in a statement. The company has received USD 160 million in commitments to date, along with a green-shoe option to raise an additional USD 40 million, exercisable over 120 days from the date of signing of the facility agreement, it said. It has currently drawn USD 100 million, and the remaining commitments would be drawn over the coming months, it added. The social loan shall abide by the company's social loan framework which aligns with the Social Loan Principles 2023, stipulating the use of proceeds, social development goals and governance, according to the loan market association, it added.

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 ..