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RBI cancels registration for 2 NBFCs, cites irregular lending practices

The Reserve Bank on Monday said it has cancelled the certificates of registration of two NBFCs -- Star Finserv India and Polytex India -- due to irregular lending practices. Hyderabad-based Star Finserv India was offering the service under 'Progcap' (owned and operated by Desiderata Impact Ventures Private Limited). Polytex India, headquartered in Mumbai, was providing services under the 'Z2P' mobile application (owned and operated by Zaitech Technologies Private Limited). Giving reasons for cancelling the Certificate of Registration (CoR) of Star Finserv, RBI said the company has violated guidelines on the code of conduct in outsourcing financial services in its digital lending operations by outsourcing its core decision-making functions, such as credit appraisal, loan sanctioning as well as KYC verification process to the service provider. Star Finserv has violated RBI guidelines on data confidentiality and security of customer information by providing complete access to customer

Can the June 2024 quarter corporate earnings disappoint markets?

Disconnect between earnings growth and stock prices, Bernstein said, is even more visible in the small-and mid-cap (SMID) universe

NBFCs' consumer, gold loan sanctions shrink sequentially in Q4FY24: FIDC

Personal loans also showed moderation, with sanctions by finance companies growing by just 1.4 per cent sequentially in Q4FY24

Zomato withdraws NBFC application, says no plans to pursue lending

It comes at a time when the company was reportedly in talks with multiple NBFCs to offer working capital loans to its partner restaurants

Tech to risk perception: Co-lending model battles 'multiple issues'

Colending happens when multiple lending partners enter into an arrangement to provide loans to priority sectors like micro, small, and medium enterprises (MSMEs)

How NBFCs are back in the reckoning

Sector has overcome the after-effects of the pandemic; its credit crossed the Rs 50 trn mark in FY25

Tech to risk perception: Co-lending model battles 'multiple issues'

Model was set up six years ago to strengthen credit flow to sectors that struggle to get financing

Credit score to bills: Steps to take if your loan application is rejected

Paying loan instalments on time is crucial for maintaining a healthy credit profile, reducing the chance of loan rejection

RBI scrutinises NBFC key management payouts under new compensation policy

A key feature of the exercise will be adherence to norms on the proportion of variable pay in total compensation

NBFC Kogta Financial raises Rs 846 cr from Canadian Pension Board, others

The Non-Banking Finance Company's (NBFC) first investor IIFL Seed Venture Fund, which had invested in October 2016, has exited, according to a statement

Securitisation volumes back to historic high after HDFC twins' merger

Housing finance company accounted for 23% of the FY23 volumes of around 1.8 trillion

Why the salary packs of top NBFC executives are on RBI's radar

Adherence to variable and deferred remuneration norms is under scrutiny

Growth is important, but not at cost of unacceptable risks: RBI governor

Business models designed for profitability could contain vulnerabilities that may not be apparent, says Shaktikanta Das

Financial market seeks incentives for NBFCs, AIFs in pre-Budget meeting

'Revisit the safe harbour clause under Section 9A of Income Tax act that encourages offshore funds to invest in India'

RBI invites applications for recognising SROs for NBFCs under its framework

The Reserve Bank on Wednesday invited applications for recognition of Self-Regulatory Organisations (SROs) for the NBFC sector under the central bank's omnibus framework. The applicant should achieve a minimum net worth of Rs 2 crore within a period of one year after recognition as an SRO, or before commencement of operations. A maximum of two SROs for the NBFC sector will be recognised. In March, RBI had issued the framework for recognising SROs for its regulated entities. SROs would be required to establish minimum benchmarks for their members. The framework specified broad parameters, like objectives, responsibilities, eligibility criteria, governance standards, and application process for SROs. According to RBI, SROs enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies by providing inputs on technical and practical aspects. "The SRO for NBFC sector is primarily envisaged for N

Bernstein sees 20% upside in IndusInd Bank, 7% downside in Bajaj Finance

The downside in Bajaj Finance, Bernstein said, was because much of the positives are priced into the stock's rich valuations

IIFL Finance plans to sell shares worth Rs 84 cr in NSE via secondary mkt

IIFL Finance's stake in NSE will go down to 0.146 per cent.The stake sale comes within months of its acquisition of 0.18 per cent stake in the stock exchange for Rs 284.4 crore.

Sebi bars acting PFS Chairman from holding post of director for 6 months

Sebi on Wednesday restrained PTC India Financial Services Ltd's (PFS) acting chairman Rajib Kumar Mishra from holding the director's post in any listed firm for six months and imposed a penalty of Rs 10 lakh on him for corporate governance lapses. Mishra is also the chairman and managing director of PTC India Ltd, a promoter firm of PFS. Also, the company's former MD and CEO Pawan Singh has been prohibited from holding any position of director or key managerial personnel in any listed firm or any intermediary registered with Sebi for a period of two years. Further, the regulator slapped a fine of Rs 25 lakh on Singh. In its order, markets regulator Sebi found that Pawan Singh had "grossly misused" his position as the MD and CEO of PFS to prevent Ratnesh from joining as Whole Time Director (Finance) and Chief Financial Officer (CFO), which was approved by the company's board. Further, Mishra, who has been PFS' non-executive chairman since November 8, 2021, has found that he was actin

RBI asks banks to rework biz plan, flags gap in credit, deposit rates

Warns microfinance institutions, NBFCs against 'usurious' rates on small loans

Banks need to revise plans to deal with credit and deposit growth gap: Das

Banks need to re-strategise their business to deal with the persistent gap between credit and deposit growth, RBI Governor Shaktikanta Das said on Friday. He also said that further actions on moderating growth in unsecured loans could be taken, if required. In November last year, RBI had flagged certain concerns on excessive growth in the unsecured retail loans and over-reliance of NBFCs on bank funding. "Recent data suggests that there is some moderation in these loans and advances. We are closely monitoring the incoming data to ascertain if further measures are necessary," he said while announcing the bi-monthly policy. "The message is to convey that RBI is watchful of every aspect of financial sector especially in the banking sector. We are agile, we are watchful and if and when some further measures are required, we will come," he said during an interaction with reporters. The Reserve Bank increased risk weights on unsecured consumer credit and bank credit to NBFCs on Novembe