Page 23 - Nbfcs

The RBI is fighting fit at 90

When RBI demonstrates performance, when it takes on board the concerns of all stakeholders, including the government, the political authority is more than happy to let it get on with its job

HDFC Credila raises $100 million via ECB to diversify funding resources

HDFC Credila, an erstwhile subsidiary of HDFC Limited (now HDFC Bank), focuses on the education loans business

Co-lending book of NBFCs likely to touch Rs 1 trillion mark by June

The partners may increase their focus on other asset classes such as loans to micro, small and medium enterprises (MSME) and home loans, given higher risk weights for personal loans

Bajaj Housing Fin board to meet on Apr 24 to discuss listing requirement

Bajaj Housing Finance is a 100 per cent subsidiary of Bajaj Finance

REs must accord highest priority to governance, compliance: RBI Governor

Attempts to clear impression about widespread action; curbs only against outliers for major breaches

Poonawalla Fincorp's AUM surges 54% in Q4FY24, hits Rs 24,800 crore

'FY24 was the year of significant growth across all business parameters', said Abhay Bhutada, MD, Poonawalla Fincorp

South Indian Bank, Karur Vysya Bank post double digit growth in deposits

The deposits of South Indian Bank grew by 11.21% year-on-year (Y-o-Y) to Rs 1,01,929 crore from Rs 91,651 cr. Meanwhile, the deposits of Karur Vysya Bank rose by 16.28% Y-o-Y to Rs 89,113 cr

Fincare SFB merges with AU SFB; consolidation enhances distribution network

AU Small Finance Bank (AU SFB) on Monday amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector. In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024. The merger is also expected to provide AU SFB with enhanced access to South India, significantly expanding its distribution network, the Jaipur-based lender said in a statement. This increased presence will facilitate the distribution of the bank's diverse range of products and services to a wider customer base, strengthening its market position in the region, it said. With this, it said, AU SFB has a franchise with a combined base of about 1 crore customers, 43,500 employees, and a network of 2,350 physical touchpoints across 25 states and union .

Bajaj Finance surges 13% in 2 weeks; Here's what is fueling the rally

As per reports, the company is planning an IPO of its housing finance arm, Bajaj Housing Finance (BHFL) at a valuation of Rs 80,000-85,000 crore.

Muthoot Microfin raises $75 million via external commercial borrowing

Muthoot Microfin on Thursday said it has raised USD 75 million by way of external commercial borrowing for on-lending and financing of social loans. Standard Chartered Bank, Doha Bank, RakBank (National Bank of Ras Al Khaimah), Union Bank of India (UK) Ltd, and Canara Bank, GIFT City participated in the funding, the microfinance firm said in a regulatory filing. "Muthoot Microfin has announced a syndicated social term loan of USD 75 million in the form of an ECB (External Commercial Borrowing)," it said, adding that the funds raised will be utilised for on-lending and financing of eligible social loans. The loan has been tied up for a 3-year and 3-month tenor and benchmarked to a 3-month Term SOFR (Secured Overnight Financing Rate) with a margin of 2.85 per cent, which will be serviced at a quarterly frequency. Muthoot Microfin CEO Sadaf Sayeed said, "This strategic move not only opens avenues for international partnerships but also introduces the MFI sector to diverse internationa

In a relief to banks and NBFCs, Reserve Bank of India modifies AIF norms

RBI said that its regulated entities (REs) will now be required to make provisioning only to the extent of the amount invested by the AIF scheme in the debtor company and not the entire investment

Microlending portfolio grows 31% to Rs 4.02 trillion in Dec quarter: Report

Microlending portfolio across lenders of all categories grew 30.9 per cent to Rs 4.02 lakh crore during the December quarter. When compared with the preceding September quarter-end, the overall portfolio showed a 6 per cent growth, the report by a credit information company said. Non-banking finance company-microfinance institutions (NBFCs-MFI) continue to dominate the sector, with a market share of 38.3 per cent, followed by 33.4 per cent for banks, 17.4 per cent for small finance banks and 9.4 per cent with NBFCs, it said. From an asset quality perspective, the loans that are not serviced for over 30 days were stable at 2 per cent, while the same for over 90 days was also stable at 0.9 per cent. The average balance per borrower inched up to Rs 48,900 during the December quarter, as against Rs 48,200 in the quarter-ago period and Rs 46,900 in the year-ago period, the data said. A bulk 83.4 per cent of the borrowers had exposure to less than 2 lenders in December, with Tamil Nadu

Bank direct lending to NBFCs to moderate at Rs 1.7-1.9 trn in FY25: ICRA

That's because of the recent rise in risk weights by the Reserve Bank of India for NBFC exposures

NBFC's mission to diversify funding may see them struggle in the quest

Mint Road's nudge to NBFCs to diversify their funding will change the game. NBFCs claim they have been caught off guard, but the issue was flagged by RBI Governor

RBI declines request to classify HDFC Ltd bonds as infrastructure bonds

HDFC bank had sought the RBI's approval to classify bonds with maturities between 7-10 years, worth around Rs 1.2 trillion, as infrastructure bonds

Loan distribution by FACE members rise by 12.2% to 24.8 mn in Q3FY24

The report added that 12 per cent of loans distributed between April and December 2023 went to women

Bajaj Finance rises 2% in weak market; BNP Paribas sees up to 35% upside

Brokerage firm BNP Paribas India initiated coverage on the stock with outperform rating and a target price of Rs 9,040.

Poonawalla Fincorp announces appointment of Arvind Kapil as MD & CEO

The current MD & CEO of the company, Abhay Bhutada, has been elevated to a group-level role

All that glitters is not gold for Reserve Bank & FinMin

Rightly so. Since November 1962, there have been many attempts to monetise gold. It's finally happening, but we must look for sustainable growth

Addressing grievances

RBI should focus more on spreading financial awareness