Page 80 - Nbfcs

Account aggregator to make applying for loan less cumbersome for users

An app will take a user's consent to share financial data with organisations

NBFC-HFC lending to reality players down 48% in FY19 at Rs 27K cr: Report

Lending to real estate developers by non-banking finance companies and housing finance firms (HFCs) fell by almost half to about Rs 27,000 crore because of liquidity crisis triggered by IL&FS default in September last, according to a report by property consultant JLL. With large non-banking finance companies (NBFCs) and HFCs shying away from fresh lending to real estate developers, smaller ones have come to the rescue of builders and provided Rs 4,000 crore fund during the second half of the last financial year, it added. "Default by leading NBFC - Infrastructure Leasing & Financial Services (IL&FS) in scheduled payments led to a liquidity squeeze in the real estate sector since September 2018," JLL India Country Head and CEO Ramesh Nair said. NBFC and HFC funding was normal during April-September 2018, but due to the crisis, the lending slowed down substantially during the second half of 2018-19, considered to be the peak period for lending activities. "In 2018-19, net ...

Govt's steps to ease NBFC liquidity crisis too short-term: Fitch report

The report, however, said NBFCs will benefit more from the Rs 70,000 crore recapitalisation of state-owned banks, which will increase their capacity to lend more

Overdraft against gold offers businessmen flexible repayment options

Industry experts feel that the rise in disbursal of gold loans is due to the NBFC liquidity crisis

FPIs could be the panacea for India's credit crisis: JPMorgan

The overseas investors could also step in to fill the financing void left by the non-bank lenders

Bet on well-managed NBFCs

They are poised to benefit from lower interest rates and can grab market share

Sector watch: Are banks looking at a stable June 2019 quarter?

Experts see stability to return to the liquidity-crisis hit sector, but caution that the financial sector is not completely out of the woods yet

Eligibility norms for PSU banks to pick pooled NBFC assets likely this week

To address the stress in the sector, Finance minister Nirmala Sitharaman in the Budget proposed that public sector banks would purchase high-rated pooled assets of financially sound NBFCs

Axis Bank says will lend cautiously over new emerging risks in economy

The comments come even as the banking system is coming out of the bad loan mess which has afflicted it for over the past five years

Residential property prices dip in Mumbai, Chennai and Kolkata in H1

The findings are based on Knight Frank's India Real Estate review report for the period January - June 2019

Financial system's liquidity is in 'huge' surplus, says RBI governor

Das said the central bank will provide a backup "if individual banks require additional liquidity"

Rs 70K-cr capital infusion in PSBs credit positive, to boost economy: S&P

The proposed Rs 70,000-crore capital infusion into public sector banks (PSBs) will provide a timely booster to these lenders, S&P Global Ratings has said. The move, announced in the Budget, is likely to be credit positive for the banking sector and the economy, S&P said in a note titled 'India's Budget attempts to address trust deficit in the financial sector. "We believe the capital infusion will help PSBs make necessary haircuts on their weak corporate loans and shore up their capital adequacy," said S&P Global rating credit analyst Geeta Chugh. The capital infusion will help some banks to come out of the central bank's prompt corrective action and resume lending and clean up their balance sheets, she added. S&P said it believe PSBs still require substantial reforms to improve risk management, service quality, efficiency, and diversity of product offerings. While the government has infused large amounts of capital into PSBs in the past few years, the progress on ...

Budget 2019: Liquidity support to banks does not rescue weak NBFCs

The Budget allowed more NBFCs to come to the bill discounting platform TreDs, potentially solving the funding need for MSMEs

Budget steps on NBFCs to boost consumption, says FM Nirmala Sitharaman

The government will allow NBFCs to raise funds in public issues

Budget 2019 is a breath of fresh air, says Thermax's M S Unnikrishnan

The finance minister has addressed current issues facing the nation, primarily the banking crisis

Budget 2019: India gives Reserve Bank more power to regulate NBFCs

The decision follows concerns that a broader financial crisis may emerge as firms like Dewan Housing Finance Corp. and Anil Ambani's Reliance Capital Ltd. struggle to find fresh funding

FIDC bats for liquidity window for NBFCs via banking channels for one-year

The FIDC has asked the RBI and the government to allow NBFCs an on-tap facility for issuance of NCDs to the retail market

Crisis-hit NBFCs seek special refinance window under Mudra scheme

The apex NBFC body Finance Industry Development Council (FIDC) Tuesday said they should be allowed to avail of refinance facility under the Mudra scheme and also setting up of a permanent refinance window at RBI similar to the one that National Housing Bank (NHB)offers them tohelp meet their liquidity needs. Following the IL&FS bankruptcy last September, the entire shadow banking sector has been under severe liquidity stress with many leading players like DHFL reporting defaults. Though the Reserve Bank has promised them all the help, nothing concrete has come up yet, while the industry has been losing market share on one hand and their stocks plunging on the other. The liquidity crisis has seen a massive 19 percentage points drop in disbursement by NBFCs in the fourth quarter of FY19, according to industry data. The sector used to witness a 15 percent growth in loan disbursement earlier. In the fiscal stability report released by the RBI last week, it warned that a .

Govt considering giving more power to RBI to regulate NBFCs: Sitharaman

Unclaimed deposits in banks have witnessed a jump of 26.8% to Rs 14,578 crore in 2018

The good and the bad

Fog over bank NPA lifts, but shadow over NBFCs lengthens