The DEA, in a letter to the Ministry of Corporate Affairs, described the financial situation as 'still fragile'
With banks facing non-performing asset (NPA) issues, NBFCs/housing finance companies (HFCs) had become an important source of funding for developers
According to Ajay Piramal, lenders must get confidence that the NBFC sector is a good one to lend to
Debt-to-equity ratio jumps to 10-year high during FY18 as borrowings account for three-fourth of industry's incremental asset growth
RBI enhances single-borrower exposure limit to 15% of bank's capital
It may appear that NBFCs are reading the tea leaves right on funding
In some cases, exposure is as high as 12% of the fund's corpus; a few investments are also in AA rated papers that are relatively less liquid
The report said liquidity tightness could lead to sharply higher financing costs for NBFIs
Says liquidity tightness might lead to sharply higher financing costs, or even difficulty in rolling over their liabilities
Don't throw the baby out with the bath water
Income-Tax department examining data received from RBI, FIU to check potential tax evasion
DHFL, JM Financial, Edelweiss Financial, Centrum Capital, Repco Home Finance, Reliance Home Finance, Aditya Birla Money and Indiabulls Ventures were down 5% to 11% on the BSE.
Bank lending to NBFCs has grown by 44% , year on year, from Rs 3.4 trn as of August 2017 to Rs 4.9 trn as of August this year
Firms with strong parent support, high asset re-pricing ability are better placed
Reliance Home Finance, Central Bank of India, Repco Home Finance, Cholamandalam Investment and Ujjivan Financial Services were down in the range of 5% to 15% on the NSE.
Seeking to calm the nerves of worried investors, Finance Minister Arun Jaitley said Monday that the government would take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds. The minister's remarks come in the wake of stock markets witnessing sudden and stiff fall in intra-day trade on Friday over concerns of liquidity crisis being faced by some of the NBFCs. "The Government will take all measures to ensure that adequate liquidity is maintained/provided to the NBFCs, the mutual funds and the SMEs," Jaitley tweeted ahead of the opening of stock markets. The Reserve Bank of India (RBI) and market regulator Sebi said on Sunday that they were closely monitoring the developments in the financial sector and were ready to take "appropriate actions" to calm the jittery investors. There are liquidity concerns following default in repayment of loans by diversified IL&FS group. Another housing finance company, DHFL, too is reportedly facing .
Analysts say the ongoing crisis at IL&FS created a panic and triggered the sell-off in these stocks
Rs 34-bn net worth already impacted, shows analysis of 10 most valuable firms
Fund managers such as ASK Group and Nisus Finance have set up or are setting up realty-focused NBFCs, to lend to the sector
Listed retail NBFCs reported a combined net profit of Rs 108 billion during the January-March quarter, compared to private sector banks' net profit of Rs 72.9 billion