Page 26 - Nbfcs

Cybersecurity threat to banking system a major challenge: RBI Governor

Regulator has dedicated team to check IT systems of banks and NBFCs, says Shaktikanta Das

Five NBFCs look to raise Rs 2,750 crore via public issue this month

The proceeds from the issue will be used for interest payment of existing borrowings, further lending, business operations and expansion plans

IRDAI eases norms for insurer investment in infrastructure debt funds

New regulation by IRDAI allows greater flexibility for insurers in IDF-NBFC investments

Poonawalla Fincorp's AUM rises 57% to around Rs 21,850 cr in Q3FY24

Sequentially, Poonawalla Fincorp's AUM expanded by 8 per cent over in the second quarter ended September 2023

Home loans' share of retail segment decline to 47.2% in Nov, shows data

Unsecured loans extended by banks at Rs 15.35 trillion

Brookfield-backed Indostar Capital sells stressed SME loans worth Rs 292 cr

NBFC says in filing it is making efforts to sell nearly 50% of its stressed assets

2024 set to be eventful for North Block, RBI in pursuit of $5 trn goal

A bank licence for industrial houses looks unlikely; the IWG itself had referred to concerns over connected lending and exposure between banks and other financial and non-financial group entitie

Bank credit to industry slows to 6.1%, services sector sees growth: RBI

The retail loans growth decelerated to 18.6 per cent in November 2023 from 19.9 per cent a year ago due to moderation in credit growth to housing

Not mandatory for banks, NBFCs to raise green funds, RBI clarifies

The Reserve Bank of India (RBI) on Friday said it is not mandatory for banks and NBFCs to raise green funds, but in case they intend to do so they must follow the prescribed framework. The central bank has issued a set of Frequently Asked Questions (FAQs) on the 'Framework for Acceptance of Green Deposits'. In April 2023, it had issued detailed guidelines for acceptance of "green deposits" by banks and Non-Banking Financial Companies (NBFCs) wherein the funds could be used for financing activities like renewable energy, green transport and green buildings. The framework came into effect from June 1, 2023. According to the FAQs, the RBI-regulated entities (REs) should pay interest on green deposits to their customers as per agreed terms and conditions and prescribed directions irrespective of allocation/utilisation of proceeds. Also, "there is no restriction on premature withdrawal of green deposits, however, the REs shall adhere to the extant guidelines referred to above". Premat

RBI extends Payments Infrastructure Development Fund scheme till 2025

Apart from physical and digital devices, Soundbox devices and Aadhaar-enabled biometric devices have been made eligible for subsidy under the PIDF scheme

Banking for growth

Financing of NBFCs must be monitored

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent, it said. The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respective

RBI flags concentration risk among govt-NBFCs, all tied to power sector

The interconnectedness between NBFCs and banks in India has seen a rise due to NBFC's increased borrowings from banks, according to the report

Further strengthen balance sheets even if financials remain strong: RBI

Gross NPAs lowest in a decade; tighter norms on unsecured loans for stability

RBI warns banks, NBFCs against reliance on model-based lending practices

The regulator said inherent biases and lack of transparency with AI/ML outcomes carry risks

Banks' asset quality improves to decadal high at end-Sept: RBI report

The central bank said the banking system and the non-banking financial companies (NBFCs) remain resilient, backed by high capital ratios, improved asset quality and robust earnings growth

RBI asks NBFCs to broad-base fundraising, reduce dependence on banks

The Reserve Bank on Wednesday asked non-bank finance companies to broad-base their fundraising to limit reliance on banks as it called for strengthening balance sheets and guarding against frauds and data breaches. According to the report 'Trend and Progress of Banking in India 2022-23' released by the RBI, the Indian banking system and NBFCs remain sound and resilient, backed by high capital ratios, strengthening asset quality and robust earnings growth. The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors. Deposit growth also picked up, although it trailed credit growth, it said. Looking ahead, it said, "Given the increasing interconnectedness between banks and NBFCs, the latter should focus on broadbasing their funding sources and reduce overdependence on bank funding. Banks and non-banks both, need to bring in greater empathy in their customer services". The concerted efforts ar

Nifty PSU Bank, Financial Services: Sell on rise strategy recommended

According to Ravi Nathani, an independent technical analyst, traders can consider to short the Nifty PSU Bank index with a stop at 5,825.

NBFC loan sanctions shrink by 5% to Rs 2.09 trn in urban area: FIDC

Growth in Semi-urban, rural areas holds up

Muthoot Microfin lists at 5% per cent discount against issue price

The stock listed at Rs 275.30, down 5 per cent when compard with its issue price of Rs 291 on the NSE.