Page 29 - Nbfcs

Best of BS Opinion: NBFCs' contagion concerns, Unambitious targets & more

Here is the best of Business Standard's opinion pieces for today

NBFCs' contagion concerns

Reserve Bank of India's decision to increase risk weights on unsecured consumer loans and bank funding has dealt a double blow to non-banking financial companies

L&T Finance inks pact with Asian Development Bank for $125 mn funds

Out of the proceeds 40 percent of it are allocated for women borrowers, while the rest will support farmers, and MSMEs, as well as loans to purchase new two-wheeled vehicles, the release stated

NBFCs should remain cautious on lending as suggested by RBI, says FM

Finance Minister Nirmala Sitharaman on Thursday said NBFCs and small finance banks need to remain cautious while lending as suggested by the Reserve Bank. Speaking at 'DATE with Tech' event here, Sitharaman cautioned that NBFCs and small finance banks should respect the red line and should not go too far in their enthusiasm. "Enthusiasm is good but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later," she said. Reserve Bank Governor Shaktikanta Das on Wednesday had said the central bank's tougher stance on unsecured loans earlier this month is a "preemptive" move aimed at ensuring financial stability. Following a massive rise in unsecured lending and delinquencies, the Reserve Bank on November 16 tightened the norms for unsecured consumer credit, asking banks and NBFCs to assign a higher risk weight. As a result, it

NBFCs likely to see assets growth moderating to 16-18% in FY24: CRISIL

India's NBFC sector is expected to record a moderate growth of 16-18 per cent in the current fiscal because of relatively slower expansion on unsecured retail loans due to the recent regulatory measures issued by the RBI, CRISIL Ratings said on Wednesday. Assets Under Management (AUM) of Non-Banking Financial Companies (NBFCs) are set to log a healthy 14-17 per cent growth next fiscal on the back of continued strong credit demand across retail loan segments, it said in a release. "Growth may be moderately lower than 16-18 per cent expected in the current fiscal, as unsecured retail loans, the fastest growing segment in the NBFC AUM pie so far, are likely to see a relatively slower growth as NBFCs recalibrate their strategies due to the recent regulatory measures issued by the Reserve Bank of India," it said. Going forward, diversification in product offerings and funding profile will be key constituents of their growth strategy, it added. The rating agency further said retail credi

Banks, NBFCs need to be watchful of stress building up: Shaktikanta Das

'Banks and NBFCs must continue to do stress tests of their books,' RBI Governor Shaktikanata Das said on Wednesday

Jio Financial Services eyes Rs 5K-10K crore via maiden bond issue

Market participants said the rate on the bonds might be 15-25 basis points higher than that on Reliance Industries bonds issued earlier this month

Medium & small NBFCs may require debt funding worth Rs 2.2 trn: ICRA

The capital profile of the larger NBFCs has improved after FY 2019 as the growth slowed down

Fintech may be the worst hit as RBI comes down hard on unsecured credit

Fintech may be the worst hit as Mint Road comes down hard on unsecured credit in the system, reports Raghu Mohan

NBFCs may turn to corporate bond market to fulfill their funding needs

NBFCs have the option to raise funds through commercial papers, but overreliance on short-term debt instruments could lead to an asset-liability mismatch

Unsecured risk

Retail loan growth needed to be checked

The rise and rise of personal loans

Higher risk weight will increase the cost of capital for such loans for lenders and discourage them to go overboard

Banks set to increase interest rates on unsecured loans and NBFCs

Demand to slow down post rate increase

Fedbank Financial IPO to open on Nov 22 at price band of Rs 133 to Rs 140

Fedbank Financial Services provides loans to MSMEs and emerging self-employed individuals

RBI tightens norms, raises risk weights for personal loans and credit cards

Loans likely to become dearer; marginal impact on bank's capital adequacy ratio

NBFC assets to grow 25-30% in FY24-25, caution on unsecured loans: Icra

Non-bank lenders are set to report growth of 25-30 per cent in their Assets Under Management (AUMs) in FY24 and FY25, a domestic rating agency said on Thursday. Icra Ratings, which made the growth estimate for Non-Banking Financial Companies (NBFCs) having AUMs of up to Rs 10,000 crore, said unsecured loans need to be monitored going forward. "High growth in the past and the expected AUM expansion going forward, shall keep the portfolio seasoning at low levels, especially for the long-tail loans, namely affordable housing and secured business loans," it said in a report. Its co-group head for financial sector ratings A M Karthik said the agency assessed the performance of about 105 medium and small NBFCs, accounting for about 14 per cent of the NBFC industry AUM as of March this year. On the asset quality front, the agency said the reported Gross Stage 3 (GS3) of the entities it assessed was manageable at 2.6 per cent in March 2023 as against 4.2 per cent in March 2022. The same i

RBI tightens norms on consumer loans, raises risk weight on credit exposure

Personal loan and Credit Cards loan may become costly

RBI bars Bajaj Finance from lending under eCOM, Insta EMI Card products

Bajaj Finance says no material impact; to review KFS

Microfinance sector lent Rs 3.48 trn in FY23, NBFC-MFI topped: Report

NBFC-MFI and banks comprise 73.90% of total lending by microfinance institutions

NBFC-MFIs the largest provider of microfinance in India: MFIN Report

Microfinance Industry Network (MFIN), an umbrella body of microfinance institutions (MFIs) of the country, in its report said that NBFC-MFIs are the largest provider of micro-credit amongst other regulated entities. In a report of the MFI sector prepared by MFIN for the year 2022-23, it said that in the microfinance space, NBFC-MFIs provided finance with loan outstanding of Rs 1,38,310 crore as on March 31, 2023, accounting for 39.7 per cent of total industry portfolio. Banks, on the other hand, hold the second largest share of portfolio of micro-credit with total outstanding of Rs 1,19,133 crore, comprising 34.2 per cent of the total in the microfinance space. Small finance banks (SFBs) have a total outstanding of Rs 57,828 crore with a total share of 16.6 per cent, the report said. At the end of the last financial year, the total MFI portfolio stood at Rs 3,48,339 crore. According to the report, the MFI sector has immense growth potential with the market size estimated by MFIN t