Page 49 - Nbfcs

42% NBFCs expect over 15% growth in AUM in FY2022, says Icra survey

Around 42 per cent of non-banking financial companies (NBFCs) expect a growth of more than 15 per cent in their asset under management (AUM) in fiscal 2021-22, says an Icra Ratings survey.

Liquidity buffer of NBFCs has improved over last year, says Crisil

But the pace of improvement in collection efficiency, the third of the wave of the pandemic, and access to funds need to be closely monitored, rating agency says

Recast loans at non-bank lenders may double by this fiscal-end: Report

The same ratio had stood at 1.6 per cent as of March 2021, after the first wave of the pandemic.

Non-bank financial entities' restructured loans to rise 3.3% by March: ICRA

Covid-19 and lockdowns to slow down its spread have affected the cash flow of borrowers, says agency

Securitisation volumes for NBFCs, HFCs surged to Rs 17,500 cr in Q1: Icra

Securitisation is the process of pooling and repackaging homogenous illiquid financial assets into marketable securities that can be sold to investors.

MFIs, smaller NBFCs collections drop to 65-85% in Q1 FY22: Acuite Ratings

The collection efficiencies of its rated microfinance institutions (MFIs) and smaller non-banking finance companies (NBFCs) have dropped to 65-85 per cent during the first quarter of fiscal 2022.

Collection efficiency of NBFCs retail pool down by 10-35% in May vs March

The collections for SME loan pools and commercial vehicle loan pools also fell significantly by around 20 per cent from the peak achieved in March 2021: Icra

RBI tightens dividend payout norms for NBFCs, links them to bad debt

NBFCs can give dividend only if accounts are clean, NPAs not hidden, and are below 6 per cent for the last three years

Covered bond issuances increase to Rs 2,200 cr in FY21: ICRA report

Domestic covered bond issuances have witnessed a sharp increase to about Rs 2,220 crore in FY2021 as against the issuances of Rs 400 crore seen in the preceding fiscal, said a report by ICRA Ratings. These bonds have been issued so far by non-banking financial corporations (NBFCs), nine in FY2021 compared to two in FY2020. "The covered bonds have seen improved acceptance in the Indian market mainly in H2 FY2021 as it provides a 'dual recourse' benefit to the investor, i.e. the repayment obligation has to be met by the entity and in case of failure to do so, by a pool of assets assigned to a trust," the rating agency said. It said that given the uncertainty on collections due to the pandemic, the protection available to an investor of a covered bond improves when compared with the conventional securitisation of the pool of assets. The domestic market for covered bonds is still in the nascent stages with the first issuance seen in FY2019. This structured product, however, has been a

RBI prescribes guidelines for distribution of dividends by NBFCs

The guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards

A new era for microfinance

Over the past few years, some banks have been fishing in the same pond, exploiting the regulatory loopholes. That's lazy banking. Now, all lenders will look for new pastures

Will co-lending in new avatar fly? It may, but not in a way it was imagined

One problem that is yet to be fully resolved is how to marry the low-cost funds of banks with the lower operational costs of NBFCs, and pass on the benefit to borrowers through a blended rate

FIDC urges govt to address issues of MSME borrowers and NBFCs

The Finance Industry Development Council (FIDC) has urged the Ministry of Micro, Small & Medium Enterprises (MSME) to address issues faced by MSME borrowers and the NBFCs catering to these enterprises.

RBI has given us 120 days to operationalise SFB: Centrum's Jaspal Bindra

In an exclusive interview with Business Standard, Jaspal Bindra, executive chairman of Centrum group said it has committed Rs 1,800 cr capital to the SFB, Rs 900 cr of which will come in first year

Deregulation of rates for NBFC-MFIs may lead to expansion of market

The large NBFC-MFIs have not rationalised their lending rates, despite achieving economies of scale.

Shriram Transport Finance raises nearly Rs 2,000 crore through QIP

The issue, which was launched on June 7, 2021, received 6.3 times oversubscription, a company release said.

Investors lap up Bajaj Finance despite NPA warning; stock up 10% in 2 days

The management of Bajaj Finance in a mid-quarter update indicated some adverse impact of Covid-19-related fresh lockdowns on business during the April-June quarter (Q1FY22)

Lenders begin vote to select highest bidder for Reliance Commercial Finance

The voting to choose the bidder will end on June 25 and resolve another Rs 9,000 crore of debt of Anil Ambani group company

Second wave impact: Auto debit payment bounce rate increases further in May

The unsuccessful auto-debit requests through the NACH platform are generally referred to as bounce rates

Top Headlines: WPI makeover on cards, number of air travellers doubles

Our top headlines on Monday track the latest developments