Page 81 - Nbfcs

Letter to BS: Weak financial institutions need operational reforms

NPAs are under-capitalised and the banks are restrained by the prompt corrective action framework as they do not meet the stipulated regulatory financial parameters

New sectoral caps to hit NBFCs, says Kotak Institutional Equities

MFs exposure to non-banks (including PFC and REC) has declined to 36% in May 2019 from 39% in Sept 2018

NBFCs may shed competitive edge as SEBI tightens rules to raise capital

Lesser regulatory intervention and flush of capital helped non-bank lenders outpace industry growth in the past

Global PEs bullish on India credit business even as NBFCs feel the pinch

NBFCs have been battling liquidity issues since the IL&FS defaulted in August last year.

RBI panel report suggests big role for NBFCs in developing MSME sector

However, if more NBFCs are allowed in the factoring platform, MSMEs will immediately witness ready buyers, and their debtor delay and working capital cycle will improve vastly

Repairing NBFCs

RBI can't allow liquidity crisis to lead to solvency issues for the sector

Loans sanctioned by NBFCs drop 31% in Q4 due to loss of investor confidence

Long-term loans, commercial vehicle loans, and housing loans saw sharp hit

Funding for NBFCs should accompany RBI's liquidity management rules: FIDC

RBI intends to prescribe stringent rules for liquidity risk management as many NBFCs were hit by a severe asset liability mismatch

RBI assures all help to troubled NBFCs; SBI monitoring exposure to sector

The country's largest lender SBI too said it has been closely monitoring its exposure to the NBFC sector for the past 10 months and taking action as required

Disciplining NBFCs

RBI's draft rules will help reboot the sector

NBFCs may see profit margins squeezing from RBI draft liquidity norms

Instead of providing a much-expected liquidity window to non-bank finance companies via the regular lenders, the central bank took a tougher stance

RBI pushes crisis-hit NBFCs to maintain more high-quality liquid assets

All NBFCs must have contingency funding plans for responding to severe disruptions

Realtors in deep trouble due to crisis in NBFC segment, says Vikas Oberoi

Oberoi said he wants this dust to completely settle between the developers and NBFCs and the banks

RBI asks NBFCs with over Rs 5,000 crore in assets to appoint risk officers

The government took control of IL&FS last year after its default triggered fears about contagion in India's financial sector.

IL&FS defaults, liquidity crunch may lead to M&As between banks and NBFCs

A good deal with an NBFC will help the smaller and regional banks grow exponentially; some of the bigger NBFCs anyway have a good feel of the bottom of the pyramid

Three choices before wobbly NBFCs

The fate of NBFCs with large exposures to the developers is intertwined with the real estate sector

Small Finance Banks, banks cede MFI market share to NBFCs

The share of NBFC-MFIs increased from 32% to 37% in the time period

NBFCs looking at offshore funds to diversify borrowing sources

The relaxation in the ECBs and masala bonds norms has made it attractive for the NBFCs and HFCs to tap into the offshore credit market for funds

New NBFC loans for real estate developers may be Rs 1.7 trillion

Experts warn that the levels of non-performing assets (NPAs) could inch up further in the current quarter.

RBI's NBFC risk-weight move to carve Rs 1.4 trn for bank credit: Crisil

Of this, banks could deploy a portion towards higher rated NBFCs given the lower risk weight for these entities