Page 82 - Nbfcs

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

NBFC liquidity normalises, fresh bond sales jump 30% in January: Report

Signalling an end to the liquidity crisis that NBFCs have been facing since last September, corporate bond issuances by them have risen by 30 percent in January, reflecting renewed confidence among both issuers as well as investors, says a report. It can be noted that non-banking finance companies or NBFCs are the biggest issuers of debt in the corporate bond market, controlling nearly 90 percent of the volume. With the 30 percent spike in fresh issuances in January, their share has clawed backed to the near normal levels to 82.2 percent of the volume. Shadow bankers depend on the bond market to raise short -term capital for on-lending, and they go to banks for long-term finance. In the previous seven months, amidst the challenging liquidity constraints faced by the sector following the IL&FS bankruptcy, the corporate bond issuances on a monthly basis has seen falling. Fresh corporate bond issuances by NBFCs saw a notable decline from 71.6 percent (of the total ...

IL&FS-led liquidity woes, Aadhaar ban roil NBFCs, micro-lending dips by 15%

The liquidity crisis at NBFCs triggered by the bankruptcy of IL&FS and the Supreme Court verdict banning use of the Aadhaar data for financial transactions have led to a 15 per cent drop in micro-lending by financial institutions for the December 2018 quarter. Disbursements stood at Rs 41,840 crore for the third quarter of the current fiscal year, down from Rs 49,450 crore in the preceding three months, show the data from the credit information company Crif High Mark. "There were two major changes during the quarter which may have resulted in the decline. First was the liquidity trouble, which subsided towards the end of the quarter, and the second was the Aadhaar verdict," agency vice president Parijat Garg told PTI. Garg said the Aadhaar verdict, which prohibits all financial institutions including non-banking finance companies from storing a users data, resulted in a fall in disbursements and also resulted in a marginal fall in the share of NBFC-MFI lenders in ...

RBI governor Shaktikanta Das rules out asset quality review of NBFCs

Shaktikanta Das also discussed the current regulations and requirements for investment in fixed income for FPIs

Letter to BS: Can't afford to have public confidence in system shaken up

The country can't afford to have NBFCs with such large asset portfolios springing unpleasant surprises on the financial system

Tight regulations good for NBFCs, sends right message to consumers: Bajaj

Bajaj said there are thousands of NBFCs in India as against just about a hundred banks and they have been working with a lighter set of regulations for a long time

Continuing crisis to cut non-bank lenders' profits by up to 0.5%: Icra

The report said NBFC segment is well capitalised for addressing the medium-term growth opportunities

Overregulation affecting liquidity, hurting sector: NBFCs tell PM Modi

On behalf of the NBFCs, Assocham submitted a deta­il­ed memorandum to the Pri­me Minister, highlighting key issues and suggestions, along with demands

Here's why New Delhi can't afford NBFCs to stumble even accidentally

At 14 per cent of GDP, India's shadow-banking universe is much smaller than the 70 per cent ratio in the People's Republic, as Moody's Investors Service notes

NBFCs likely to face more downgrades in December quarter, say experts

Until normalcy returns, analysts advise investors against taking fresh exposure to NBFC stocks

NBFCs in focus; Repco Home, DHFL rally up to 7%

Shares of housing finance companies DHFL, Repco Home Finance Reliance Home Finance, Can Fin Homes, Indiabulls Housing Finance rallied up to 7 per cent on BSE in the intra-day trade on BSE.

IL&FS crisis: RBI allows NBFCs quicker turnaround time for loans

According to the revised norms, loans of original maturity of more than five years can be securitised after receiving the repayment of six-month instalments

Two-thirds of NBFCs and HFCs have strong parentage, biz with long vintage

Consumer and small- and medium-enterprises loans account for 60 per cent of their loan mix

Tight liquidity may prompt banks to stay away from NBFC, HFC bonds: Report

The report said the move is likely to improve funding access for entities rated IND A or lower

NBFCs are key to India's growth story

The sector has played a critical role in the development of infrastructure, transport and the support system for economically weaker sections

NBFCs tap non-conventional sources, tweak business models for funds

This comes after monetary issues, stemming from asset-liability mismatch, were taken up nearly two months ago

NBFCs go easy on hiring as IL&FS crisis hits their lending business

Until a few months ago, NBFCs were recruiting chief executive officers with annual packages of Rs 20-45 million

Infibeam Avenues to PC Jeweller, beaten-down stocks stage a comeback

NBFCs, too, have rallied by over 25% in the past two weeks amid easing of liquidity conditions

'Openness' key to resolving current crisis

An interconnected financial system requires collaborative and calibrated interventions

NBFCs facing liquidity issues but no 'crisis', says Corp Affairs Secy

Amidst authorities working on ways to tackle the IL&FS crisis, Corporate Affairs Secretary Injeti Srinivas Monday said non-banking financial companies, particularly housing finance firms, are facing liquidity issues but there is "no crisis". He also emphasised that there is a need to introspect the business models followed in the NBFC sector and adopt the model that is sustainable. The IL&FS crisis, triggered by debt defaults by some group companies, has sparked off concerns over liquidity in the system, while the Corporate Affairs Ministry last month superseded the holding company's board as part of larger efforts to contain the situation. Responding to queries about liquidity situation, Srinivas said that basically in the NBFC segment, the issue is more pronounced with respect to housing finance companies that are facing liquidity problems. "I won't get into individual names. It is segmental problem... these are big entities part of that segment. At the macro level some ...