Page 21 - Nbfcs

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

RBI-appointed auditor completes the special audit of IIFL Finance

Finance firm facing curb on gold loan business

Muthoot Microfin enters into strategic co-lending partnership with SBI

Muthoot Microfin on Thursday said it has entered into a strategic co-lending partnership with the State Bank of India (SBI). Under the agreement, Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises. The loan amounts will range from a minimum of Rs 10,000 to a maximum of Rs 3 lakh. With this collaboration, Muthoot Microfin Limited aims to extend its financial services to women entrepreneurs in rural and semi-urban regions across India, the Kochi-headquartered microfinance firm said in a statement. "With this partnership, we will be able to offer wide range of products and services to our clients, most importantly it will help us in meeting the growing demand of our women entrepreneur clients in a cost-effective manner," Muthoot Microfin CEO Sadaf Sayeed said. Under the co-lending model, banks are permitted to co-lend with all registered NBFCs (including

Bajaj Housing Finance approves to file IPO to raise Rs 4,000 crore

The IPO would be subject to market conditions, approvals and regulatory clearances, the company added.

MF funding to NBFCs grow at 30% to Rs 2.08 trn in April 2024: CareEdge

Signals confidence in robust profile of NBFCs

Tata Capital expects healthy retail loan growth in FY25: Senior executive

Slower growth expected in FY25 but it would still be 'significantly higher' than the industry, says company

IIFL Samasta Finance to raise up to Rs 1,000 crore via secured bonds

IIFL Samasta Finance, a non-banking microfinance company (NBFC-MFI), plans to raise up to Rs 1,000 crore through public issue of secured bonds for the purpose of capital augmentation and business growth. The bond issue opens on June 3 and closes on June 14, IIFL Samasta Finance said in a statement. IIFL Samasta Finance plans to issue bonds, aggregating to Rs 200 crore, with a green-shoe option to retain over-subscription of up to Rs 800 crore, it said. The IIFL Samasta bonds offer the highest coupon rate of 10.50 per cent per annum for a tenor of 60 months, it claimed. The NCD is available in tenors of 24 months, 36 months and 60 months, it said, adding, the frequency of interest payment is available on monthly and annual basis for each of the series. The company has a strong physical presence through about 1,500 branches and caters to the credit needs of underserved and unserved population, primarily women entrepreneurs from underprivileged background, IIFL Samasta Finance MD an

PhonePe launches secured lending platform with banks, fintech firms

Walmart-owned fintech firm says service will help 535 mn users on its platform

Unlocking India's decadal growth

Sustained high growth will need hard reforms

Paytm drops 3% after Q4 loss broadens; check trading strategy here

The decline followed the company's announcement of its Q4 results, which fell short of market expectations. Paytm's loss widened to Rs 549.6 crore in Q4FY24

Ireda to issue FPO this financial year to support its growing size

IREDA launched its initial public offering (IPO) in December 2023 and debuted on Dalal Street after two failed attempts over the last decade

Unsecured loans, capital market funding can bring grief for NBFCs: RBI DG

Over-reliance on unsecured lending and capital market funding can "bring grief" to non-bank lenders in the long run, Reserve Bank Deputy Governor Swaminathan J has cautioned. In an address to heads of assurance functions of non-bank finance companies at an RBI-organised conference on Wednesday, Swaminathan also warned against over-reliance on algorithms for taking lending calls. He also went public with the RBI's disappointment at the tendency of "misguided or intelligent interpretation" of rules to "circumvent regulations" and termed this as a "significant threat" to the financial system's integrity. The career commercial banker-tuned-regulator also flagged the risk limits for certain products or segments like unsecured lending are "way too high" to be sustainable in the long run. "There appears to be a fancy among most NBFCs to do more of the same thing, such as retail unsecured lending, top up loans or capital market funding. Over reliance on such products may bring grief at som

RBI action could increase business volatility for some NBFCs: Fitch

Firms' implementation of regulatory instructions varies, says ratings agency

RBI urges gold loan NBFCs to strictly comply with norms amid biz surge

RBI took stock of the gold loan business of non-banking finance companies after one of them - IIFL Finance faced regulatory restriction for violating norms

RBI urges NBFCs to maintain constant vigil against potential risks

Swaminathan said that NBFCs are highly exposed to a slew of risks which can affect their financial and operational status like cybersecurity and other risks

Vacuum for Indian MSMEs seeking growth finance: Nishu Malhotra, ADM Capital

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

India Inc including NBFCs files ECB intent worth $7.73 billion in March

Amongst prominent companies which filed intent include private steel producer JSW Steel - $ 900 million, public sector power sector unit NTPC - $ 745.2 million and Power Finance Corporation - $ 450 mn

Piramal Group's fund management arm invests Rs 600 cr in Annapurna Finance

The assets under management of Annapurna Finance exceed $1.25 billion as of March 31, 2024, with 1,372 branches spread across 20 states and covering nearly 450 districts

RBI's advisory will not affect Manappuram's business, says MD & CEO

The RBI recently advised NBFCs extending gold loans not to lend in cash exceeding Rs 20,000, citing the Income Tax Act

RBI asks NBFCs to stick to gold loan cash payout cap of Rs 20,000

Retail credit in India has been growing at a rapid clip, with loans against gold rising threefold over the last four years