Page 36 - Nbfcs

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

Fintechs can act both as competitors and collaborators: T Rabi Sankar

He said regulators also draw comfort in these arrangements as traditional financial entities- banks, NBFCs which are well regulated will continue to discharge the basic responsibility

Chief executives of shadow banks urge RBI to allow public deposits

Number deposit taking NBFCs fell sharply in last 8 years

Loan sanctions through NBFCs slip sharply to 5.7% in June quarter

Sequentially, the sanctioned shrunk by 20.3 per cent over the quarter ended March 2023 (Q4FY23), data from Finance Industry Development Council (FIDC)-CRIF showed

GeM's provision of penal interest on delayed payments to start from Sept

A provision to enable public procurement portal GeM to impose penal interest for making delayed payments to vendors by government ministries and departments will be fully operational from end of this month, a senior official said on Tuesday. In 2020, the government decided to levy a 1 per cent penalty on government departments and agencies for delayed payments to vendors selling goods on the GeM platform. "The functionalities have been developed... In about three weeks time, it will be fully functional," Government e-marketplace (GeM) CEO P K Singh told reporters here. He said that for non-Public Financial Management System (PFMS) payments, the portal is calculating the interest but for PFMS things, work is in the final stages. The PFMS, administered by the Department of Expenditure, is an end-to-end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. "wherever there will be a clear violation, penal interest will be collected...but we

RBI must seriously consider deposit licences for NBFCs: Ajay Piramal

"By the end of September, we will have approximately Rs 6000 crore of cash in the balancesheet, which is much more than the LCR requirements"

Shriram Finance's Umesh Revankar takes charge as chairman of FIDC

Revankar, the newly elected chairman of FIDC, expressed his gratitude and enthusiasm for the opportunity

RBI guv Shaktikanta Das asks NBFCs to reduce reliance on bank borrowing

Cautions on risk with unsecured lending; Remain alert against complacency

Infra debt fund NBFCs must have net owned fund of at least Rs 300 cr: RBI

Infrastructure Debt Fund-NBFCs (IDF-NBFCs) will now be required to have a net owned fund (NOF) of at least Rs 300 crore, said the Reserve Bank's revised norms for such entities issued on Friday. Besides, they should have a capital-to-risk weighted assets ratio (CRAR) of minimum 15 per cent (with minimum Tier 1 capital of 10 per cent). RBI said a review of the guidelines applicable to IDF-NBFCs has been undertaken in order to enable them play a greater role in financing of the infrastructure sector and to harmonise the regulations governing financing of infrastructure sector by NBFCs. The review has been undertaken in consultation with Government of India. An IDF-NBFC is a company registered as NBFC to facilitate the flow of long- term debt into infrastructure projects. It raises resources through issue of rupee or dollar-denominated bonds of minimum 5-year maturity. Only Infrastructure Finance Companies (IFC) can sponsor IDF-NBFCs. "IDF-NBFC shall raise funds through issue of eith

Banks' lending to NBFCs soars 35% to Rs 14.2 trn in June: Care ratings

Banks' lending to non-banking finance companies (NBFCs) rose by 35.1 per cent to Rs 14.2 lakh crore in June, a report said. Credit exposure of banks to NBFCs rose by a robust 35.1 per cent on-year to Rs 14.2 lakh crore in June, indicating non-banking finance firms' decreased reliance on international borrowings. This also pushed up NBFCs' share in overall credit from 8.5 per cent in June 2022 to 9.9 per cent in the reporting month, according to Sanjay Agarwal, a senior director with Care Ratings. However, the report noted that the merger of HDFC with HDFC Bank, effective July 1, will lead to a reduction in the share and also the exposure of banks to NBFCs, as HDFC's bank borrowings will undergo a temporary reclassification, resulting in a shift of exposure to HDFC Bank. Meanwhile, mutual funds' debt exposure to NBFCs, including through commercial papers (CPs) and corporate debt, also increased 14.5 per cent to Rs 1.62 lakh crore in June, it said. According to the report, MF exposur

The death of a defaulter

There are a few lessons to be learnt from art director Nitin Desai's suicide

Manappuram Finance Q1 results: Profit rises 76% on gold loan demand

Shares of the company closed 2.84% up after the results

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%