Page 35 - Nbfcs

Indian private credit funds, non-bank lenders filling gap left by banks

Private credit funds lend to these companies at 12%-18%, splitting transactions into tranches. The riskiest of such credit can yield up to 20%-24%

Poonawalla group appoints Keki Mistry as strategic advisor for fin services

At present, the Pune-based group has one non-banking finance company (NBFC) and a clutch of investments in financial services companies

LIC Housing Finance hits 10-month high on 43% YoY net profit growth in Q1

In the past one year, this non-banking financial services (NBFC) stock has surged 16 per cent, as against a 12 per cent jump in the S&P BSE Sensex

Icra Ratings logs 88% growth at Rs 41 crore in April-June quarter

Revenue during the quarter rose 11 per cent on-year to Rs 102.7 crore

Sharp rise in unsecured loans may push credit costs: India Ratings

The unsecured loan book saw higher credit losses during the pandemic, however on a steady state basis, the losses can range between 4-8%

When P2P platforms act like deposit-taking NBFCs

Before it is too late, the RBI should come down on practice of renting out the P2P licence and some of them playing fund managers instead of offering a meeting platform to borrowers and the lenders

Auxilo Finserve raises Rs 470 cr; to expand loan base, product offerings

The company stated that it has funded over 7,500 students across over 900 universities in over 25 countries

TVS Credit Services reports 40.9% jump in Q1 net profit, total income up

Non-banking financial company TVS Credit Services Ltd has reported a 40.9 per cent rise on its net profit for the quarter ending June 30,2023 at Rs 117 crore, the company said on Tuesday. TVS Credit Services had reported Rs 83 crore as net profit during the corresponding quarter of previous year. Total income during the quarter under review grew to Rs 1,353 crore from Rs 868 crore registered in the same period of last year. The assets under management during the April-June quarter stood at Rs 21,924 crore as compared to Rs 15,396 crore recorded in the corresponding quarter of last year. In Q1 FY24, the company's business witnessed substantial growth in loan disbursals across its product portfolio, attributed to vehicle and consumption-led credit demand, TVS Credit Services Ltd said in a statement. "During this period TVS Credit added nearly 10 lakh new customers, bringing its total customer base to over 1.1 crore as of date," the company said. During the quarter under review, the

Top headlines: Jio Financial India's most valued NBFC, turmeric prices soar

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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