Page 8 - Non-banking Finance Companies
Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear
While the issue of providing liquidity to existing borrowers who are sapped of revenues has been addressed, banks will have to undertake due diligence on the solvency of units, said bankers.
 "Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear")
Sitharaman gives liquidity boost of Rs 75,000 cr to shadow banks, MFIs
Sitharaman announced a special liquidity scheme of Rs 30,000 crore for NBFCs, housing finance companies (HFCs) and MFIs, which are finding it difficult to raise money from the debt markets.
 "Sitharaman gives liquidity boost of Rs 75,000 cr to shadow banks, MFIs")
Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%
According to data from Bloomberg, banks have seen among the sharpest cuts in target prices -- between 16 and 60 per cent.
 "Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%")
Private equity players see new business opportunities in post-Covid world
Currently, the PE exposure in credit is limited and constitutes less than a 2 per cent share of the overall credit offered to industry.
 "Private equity players see new business opportunities in post-Covid world")
RBI guv Das chastises banks not doing enough on lending, NBFC liquidity
Relaxation likely on branch audit as Guv meets bankers
 "RBI guv Das chastises banks not doing enough on lending, NBFC liquidity")
Discretionary loans, cross-selling likely to reduce after moratorium
Larger challenge is to communicate to borrowers the difference between moratorium and waiver, say lenders
 "Discretionary loans, cross-selling likely to reduce after moratorium")
NBFCs ask FM to offer credit guarantees to banks on loans extended by them
Industry has also pitched for SPV with initial funding from govt, to help refinance small and mid-sized NBFCs
 "NBFCs ask FM to offer credit guarantees to banks on loans extended by them")
Big NBFCs need direct liquidity line from RBI: Bajaj Finserv's Sanjiv Bajaj
In an interview with Surajeet Das Gupta, Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, charts out the challenges and way forward for the economy as well as NBFCs
 "Big NBFCs need direct liquidity line from RBI: Bajaj Finserv's Sanjiv Bajaj")
IBA to discuss the issue of giving a moratorium to NBFCs on Saturday
A senior executive of a public sector bank said the IBA's management committee meeting would discuss the issue of giving a moratorium to finance firms.
 "IBA to discuss the issue of giving a moratorium to NBFCs on Saturday")
RBI measures, global markets surge propel Sensex, Nifty to one month high
Most global markets surged as investor appetite for risk assets improved due to the progress of an experimental drug for treating covid-19 and on US's plan to reopen its economy.
 "RBI measures, global markets surge propel Sensex, Nifty to one month high")
NBFC association to RBI: One-time loan restructuring need of the hour
FIDC has asked the central bank to extend the facility to all customer loans
 "NBFC association to RBI: One-time loan restructuring need of the hour")
NBFCs have to repay debt worth Rs 1.75 trillion by June 2020: CRISIL
Many finance companies are already facing a liquidity challenge after the IL&FS debacle.
 "NBFCs have to repay debt worth Rs 1.75 trillion by June 2020: CRISIL")
Cash-strapped DHFL not to make any payment to lenders, bondholders
The Corporate Insolvency Resolution Process (CIRP) was initiated against the debt-ridden company as per the provisions of the Insolvency and Bankruptcy Code, 2016 with effect from December 3, 2019
 "Cash-strapped DHFL not to make any payment to lenders, bondholders")
NBFC-MFIs seek clarity from RBI on 3-month moratorium on loans
RBI seeks data on drawdowns, bank loans, exposure to NCDs and CPs
 "NBFC-MFIs seek clarity from RBI on 3-month moratorium on loans")
Rating agency Brickwork downgrades PTC Financial Services to AA- from AA
The negative growth in the loan book of PFS, a unit of PTC India, is on account of funding challenges faced by NBFCs
 "Rating agency Brickwork downgrades PTC Financial Services to AA- from AA")
Access to funding improves for NBFCs but not yet at pre-IL&FS level
Debt capital markets continue to shy away from the shadow banking sector
 "Access to funding improves for NBFCs but not yet at pre-IL&FS level")
Indian firms raise $23 bn via dollar bonds; issuance sees five-fold jump
Softening of US treasury yields, weak domestic liquidity attract firms to yield-chasing offshore market
 "Indian firms raise $23 bn via dollar bonds; issuance sees five-fold jump")
BS Banking Annual 2019: Tighter norms, coexistence with banks, NBFCs future
The single biggest learning is that percentages after a certain size are not relevant, both on the asset and the liability side, says IndiaBulls Housing MD Gagan Banga
Markets to lay down long-term base for returns, says Vaibhav Sanghavi
The focus would increase on FY21 earnings which can grow by about 15 per cent, according to Vaibhav Sanghavi
 "Markets to lay down long-term base for returns, says Vaibhav Sanghavi")
Industry remains sceptical about loans to NBFCs under partial guarantee
Scepticism over the quality and value of underlying assets and the scheme, excluding big-ticket loans (or wholesale loans), may remain the barriers in the PCG scheme's success
 "Industry remains sceptical about loans to NBFCs under partial guarantee")
