Page 30 - Nbfcs

Indian banks are facing a higher risk of defaults from unsecured loans: UBS

The note said the share of borrowers with more than five personal loans rose from 1 per cent in 2018 to 7.7 per cent in March 2023

RBI to extend PCA supervisory norms to govt-owned NBFCs from October 2024

The Reserve Bank on Tuesday said the strict supervisory norms under the Prompt Corrective Action (PCA) Framework will apply to government-owned non-banking financial companies from October 2024. Being put under the PCA framework means restrictions on dividend distribution/ remittance of profits; promoters/ shareholders to infuse equity and reduction in leverage; and restrictions on the issue of guarantees or taking on other contingent liabilities on behalf of group companies. The Reserve Bank introduced the PCA Framework for NBFCs on December 14, 2021. "The Framework has since been reviewed and it has been decided to extend the same to Government NBFCs (except those in Base Layer) with effect from October 1, 2024, based on the audited financials of the NBFC as on March 31, 2024, or thereafter," the central bank said in a circular. Some of the major government non-banking financial companies (NBFCs) include PFC, REC, IRFC and IFCI. The objective of the PCA framework is to enable ..

Microfinance sector's disbursements up 30% in Q1FY24, shows data

Lenders raise concern over attempts to harm credit culture

Select unsecured loans up by nearly Rs 7 trillion since 2019, shows data

Value has nearly doubled in the period after the Covid-19 pandemic

Monetary policy: UCB gold loan limit, CoF tokenisation facility, and more

RBI has allowed NBFCs in the middle and base layer to offset their exposures with eligible credit risk transfer instruments

Strong growth prospects for the affordable housing finance sector

The competitive intensity is high in the lender segment, with banks, small finance banks and NBFCs including both specialised HFC and non-specilaised NBFCs active in the segment

Credit to retail sector dips to 18.3% in August 2023, shows RBI data

Picks up speed in lending to agri, services

Household savings report: There is no distress, says finance ministry

The clarification comes in the backdrop of Reserve Bank of India data showing that household net financial savings rate is at its lowest in decades

RBI's stringent norms: Wilful defaulters must be identified within 6 months

NBFCs, co-op banks allowed to name defaulters

Would like to see 10-12% of funding met by public deposits: CEO, LIC HF

Most of our funding, around 52-53%, is through NCD issues, says Adhikari

Headwinds ahead for NBFCs; analysts differ significantly in recommendations

But analysts differ significantly with respect to individual large players

NBFCs need to diversify funding sources, reduce reliance on banks: RBI

NBFCs' reliance on banks increased, particularly for NBFCs in the upper layer (NBFCs-UL), whose direct bank borrowings have grown steadily

A new dawn for microfinance

There are many contributing factors to the growth and new-found enthusiasm for microfinance

Mutual funds debt exposure to finance companies rose 60.1% in July

The exposure through investment in commercial paper of NBFCs crossed the Rs one trillion mark, last seen in August 2019, it said

RBI releases list of 15 NBFCs in upper layer under scale based regulations

All deposit-taking NBFCs and non-deposit-taking NBFCs with an asset size over Rs 1,000 crore are in the middle layer

RBI says 15 large NBFCs to comply with enhanced regulatory requirements

Reserve Bank of India on Thursday said 15 large NBFCs, including LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons, will be subject to enhanced regulatory requirements. The central bank has categorised NBFCs into Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL). A list of 15 large Non Banking Finance Companies (NBFCs) falling in the Upper Layer category has been released. Besides LIC Housing Finance, Bajaj Finance, Shriram Finance and Tata Sons, others in the list include L&T Finance, Piramal Capital & Housing Finance, Cholamandalam Investment and Finance Company. Indiabulls Housing Finance, Mahindra & Mahindra Financial Services, Tata Capital Financial Services, PNB Housing Finance, HDB Financial Services, Aditya Birla Finance, Muthoot Finance and Bajaj Housing Finance are also part of the list. According to RBI, despite qualifying for identification as NBFC-UL as per scoring methodology, TMF Business Services Ltd

RBI releases list of NBFCs in upper layer under scale-based regulations

In terms of the framework, once an NBFC is classified as NBFC-UL, it shall be subject to enhanced regulatory requirement, at least for a period of five years

India Inc faces costlier borrowing as corporate-govt yield gap widens

The yield spread between the AAA-rated 5-year corporate bond and the 5-year government bond narrowed by 7 basis points in August

State-owned non-bank lender IREDA files for IPO with market regulator

State-owned non-banking financial company, Indian Renewable Energy Development Agency (IREDA), has filed for an initial public offering (IPO) with the country's markets regulator, as per draft papers

Developing best practices

SRO for fintechs will be a first step