Page 84 - Nbfcs

Keep a close eye on credit quality, financials of NBFCs before investing

These instruments should not constitute more than 15-20% of your debt portfolio

NBFCs must embrace technology to attract private equity investments: Study

As most of public sector banks and some private banks are grappling with bad loans for last many years, it has generated a tremendous opportunity for NBFCs to ramp up its scale

NBFCs to have 19% of credit market by 2020: Crisil

Finance companies in India are expected to see an 18 per compounded annual growth rate (CAGR) for the next two and a half years and raise their share in total credit to 19 per cent by 2020, according to rating agency CRISIL.In 2017, non-bank finance companies (NBFCs) increased their share in the total credit market to 16 per cent, from 13 per cent in 2015. The share of public sector banks (PSBs) reduced to 51 per cent, from 57 per cent in 2015. CRISIL says PSBs will see a further shrinking of their share to 47 per cent by 2020 as they battle with capital constraints. NBFCs replicating traditional banking services with innovative products and delivery systems would also chip away at PSBs' share.The home loans segment, largest business segment for NBFCs, is expected to grow at a steady CAGR of 18 per cent over the next three years as they focus on self-employed customers and lower ticket size. NBFCs are also set to increase their market share in the wholesale finance business from 12 ...

NBFCs go deep into commercial loan territory

The sector is also witnessing some pressure in its asset quality as economy contracts

Unscientific strategy

If you have an active trading account or a consumer loan, consider investing in NBFCs

NBFCs dominate 2017 multi-bagger list

Share of NBFCs in total retail lending has touched all-time high of 36% as on March 2017

Attack on shell firms: MCA issues notices to errant NBFCs

A similar attempt was undertaken by the RBI a few years back

NBFCs' share of retail loans at a 10-year high

They account for 36% of all retail loans in FY17, up from 29% in FY11

NBFCs in school finance scout for funds

Delhi-based Indian School Finance Company and Bengaluru-based Varthana are planning to raise fund

NBFCs' NPAs to linger on for 1-2 quarters more on note ban: Moody's

However, NBFCs' exposure to risks from LAP is broadly offset by their share of stable mortgage loans

Smaller NBFCs may offer big returns

One of the reasons why the Street was sceptic about smaller non-banking finance companies (NBFCs) was whether their stocks were getting rerating ahead of fundamentals. The note ban period between November 2016 and January 2017 has addressed this concern effectively, and stocks such as Capital First, Repco Home Finance, Cholamandalam Investment and Shriram City Union are yet to catch up with their pre-demonetisation levels; Can Fin Homes is an exception and is up 16 per cent since November 8, 2016. The recent correction offers investors a good opportunity to accumulate these well-managed smaller NBFCs. Despite the note ban, loan demand remained buoyant for most of them. In the coming quarters, experts believe that the relatively lower base would give them the competitive edge to grow faster (25 - 30 per cent) while some of the seasoned players such as HDFC, LIC Housing, Shriram Transport and Bajaj Finance could just about maintain the current growth levels of 17 - 25 per cent. Niche ...

Conversion to small banks may hit NBFCs initially

Analysts feel NII of SFBs may gradually fall from current 47.8% to 27.5% in the next two years

Banks may be safer bets than NBFCs in 2017

A decline in cost of funds and treasury gains are expected to help net interest margins stabilise

NBFCs slump; Manappuram Finance, Bharat Financial down over 10%

Manappuram Finance, Can Fin Homes, Shriram City Union, Bharat Financial and Muthoot Finance were down over 10%.

Overdraft against salary is cheaper

Short-term loans from NBFCs can be more convenient but come at higher cost

Sound financials place NBFCs to make best of credit demand

The aggregated balance sheet of NBFC sector expanded by 15.5% in March 2016. On the asset quality level also, performance improved with GNPAs declining to 4.6%