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Retail loans given by NBFCs to grow 18-20% in FY24, says Icra report

Digitalisation and cross-selling shaping high growth in unsecured loans, it says

HDFC's exit creates an opportunity for wholesale NBFCs in debt market

13 NBFCs raised Rs 12,551 crore in July so far

NBFC Dvara KGFS secures $10 mn in debt funds for capital adequacy, growth

Non-banking finance company Dvara KGFS on Wednesday said it has raised USD 10 million in debt funds. The funds secured would be instrumental in augmenting the company's capital adequacy and accelerating its growth plans during the current financial year. Netherlands-based financial inclusion investor Triple Jump Financial Inclusion Resilience Fund B.V., has provided USD 5 million as subordinated debt in the form of External Commercial Borrowings (ECBs) as per the Reserve Bank of India guidelines. "This strategic partnership will further strengthen DVARA KGFS' mission to extend its comprehensive financial services to underbanked communities," Dvara KGFS said in a statement. Additionally, the company raised USD 5 million from Switzerland-based investment manager BlueOrchard Finance Ltd through ECBs. The proceeds would be allocated towards Dvara KGFS onward lending programme which aims to support microfinance and microbusiness loan customers in regions with limited access to credit .

With a pause in rate hikes, NBFCs, like banks, are in a sweet spot

RBI's pause in interest rate hikes and a continuation of the revival of private consumption would boost NBFCs in the first quarter (Q1) FY24

Securitisation volumes surge 60% to Rs 55,000 cr in Q1: Crisil Report

Robust loan collections and high credit growth at non-bank lenders led to 60 per cent jump in securitization volumes to Rs 55,000 crore in June quarter, a report said on Monday. This is the highest ever in the first quarter of a fiscal, rating agency Crisil said, attributing the growth to high demand from banks and non-bank finance companies (NBFCs) resorting to securitization as a funding route. Securitisation refers to an activity where a financier or lender transfers future receivables on a loan or a bunch of loans to other financiers which helps with immediate liquidity requirements. During the first quarter, the number of transactions went up to over 250 from 160 in the year-ago period, it said, adding that private and public sector banks continued to be the dominant investors, followed by foreign banks. There were 80 originators and 50 investors which were active during the quarter, the agency said. Securitisation is allowing banks to do two things: keep driving their credit

An innovative approach to domestic staff loans

This system could convert 15 crore households into social venture capitalists, offering Rs. 75,000 crore worth of microloans to staff, and integrating the latter into formal lending

Equitas Holdings surrenders NBFC licence to RBI, registration cancelled

The Reserve Bank of India on Monday said Equitas Holdings Ltd has surrendered its NBFC licence, and accordingly its registration has been cancelled. The RBI, in the exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled its CoR (certificate of registration), the central bank said in a statement. As the company does not hold public funds therefore it may have voluntarily surrendered its certificate of registration, it added.

L&T Finance group focuses on retail, aims 25% CAGR in 3-4yrs: Official

Larsen & Toubro Group's non-bank financing vertical aims to maintain a compound annual growth rate (CAGR) of over 25 per cent predominantly by focusing on retail financing as a long-term strategy, a senior official said on Sunday. With the current growth rate, the retail portfolio of the group is estimated to reach Rs 1,00,000 crore by FY2025-26. "In FY23 we grew by 35 per cent. Our CAGR for the next few years will continue to be at least 25 per cent with the opportunities lying ahead," L&T Finance group CFO Sachinn Joshi told PTI. L&T Finance Group would predominantly become a retail finance company in the long term, gradually reducing the wholesale book from its existing portfolio, which is around Rs 19,500 crore now," he said. In the current fiscal year itself, he expects retail to reach 80 per cent of the total loan book, two years ahead of the target under its goal "Lakshya." The group's non-banking finance companies' loan book currently stands at about Rs 81,000 ...

TVS Credit Services raises Rs 480 crore capital from Premji Invest

The primary capital will be utilised to further strengthen TVS Credit's efforts in expanding its customer base in new markets

NBFC loan sanctions up 2% YoY to Rs 4.46 trn in quarter ending March

Pulled down by a demand deceleration from urban and semi-urban customers and a contraction in personal and home loans, non-bankers loan book grew just about 2 per cent in Q4 FY23 to Rs 4,46,132 crore from Rs 4,38,345 crore a year ago when it soared 28 per cent year-on-year. Even this wouldn't have been possible had it not been for better demand from the hinterland, shows the latest data from the apex industry body FIDC (Finance & Industry Development Council). However, for the full year, the NBFC system-wide lending jumped a healthy 23.9 per cent to Rs 16,93,286 crore from Rs 12,87,484 crore. In absolute terms, incremental lending rose by 4,05,802 crore, according to the FIDC data. The industry's rural book rose to Rs 1,20,000 crore in Q4 from Rs 1,09,000 crore in Q1 of FY23, semi-urban rose from 47,000 crore in Q1 to Rs 50,000 crore in Q4, and the urban book rose to Rs 2,78,000 crore from Rs 2,74,000 crore in the reporting quarter. Of the total loan disbursed in the March 2023 ...

Credit sanctions to pick up traction as base effect fades, say NBFCs

The last quarter of FY23 (January-March) showed normal business activity compared to the same period the year before, reflecting pent-up demand after the pandemic

MF industry has grown to Rs 40 trn but it is only beginning: Sanjiv Bajaj

Pune-based Bajaj Finserv MF is set to launch products across equity, debt and hybrid categories this month

Visits to banks, physical presentation of documents can be avoided: Report

The report also suggested that REs may adopt Faceless / Straight Through Processes' (STPs) in order to close accounts, and/or accept, acknowledge, and track the communication by the customer

NBFC-MFIs' assets under management to see up to 30% growth in FY24: Crisil

NBFC-MFIs' assets under management are expected to grow by up to 30 per cent in the current financial year, domestic rating agency Crisil said on Thursday. The year will also see an improvement in asset quality and profitability for the Non-Bank Finance Companies-Microfinance Institutions (NBFC-MFI) segment, the agency said. In a report, Crisil said the NBFC-MFI segment's Assets Under Management (AUM) stood at Rs 1.3 lakh crore at the end of March 2023, and the segment has the highest share in the overall microlending universe which also consists of small finance banks, universal banks and other lenders. The overall AUM is expected to have touched Rs 3.4 lakh crore for the entire microlending universe and the growth in NBFC-MFIs has outpaced the same of other lenders. The growth in the NBFC-MFIs segment has come on the back of pent-up demand for credit and increase in ticket-size of disbursements, the agency said. Crisil's senior director Ajit Velonie said the market share of ...

Stringent rules for education loans turn parents towards gold loans

The recent surge in gold prices has made the yellow metal shinier as it fetches more funds for borrowers. Significantly, gold prices shot to Rs 60,000 per 10 grams from about Rs 50,000 a year ago

First climate development financial institution runs into FinMin roadblock

Ministry ready to offer provisions to ease global climate funding

Green energy to hold a third of REC's loan portfolio by 2030: CMD

The management also said its growing exposure to green energy sector, non-power sectors, such as infrastructure, logistics and irrigation aided its growth plans

Poonawalla Fincorp to keep headcount at 3,000 for 5 yrs to build AUM

Eyes Rs 50,000 crore AUM by FY27, up from Rs 16,000 cr currently

Five Star Business Finance expects 30% growth in AUM in FY24

Firm plans 60 new branches during the year, increase staff strength and hike ticket size as well

In search of binding ties: Lack of SRO will continue to haunt shadow banks

Legacy shadow banks continue to do business without a self-regulatory body. This is far from ideal