Page 29 - Nbfcs

NBFCs to see better loan growth in FY21: Tata Capital CEO Rajiv Sabharwal

Foreign money is coming into the market and because of stability in rupee the hedging cost is also lower

Five-point agenda for NBFCs to create a sustainable business model

Non-banking financial companies (NBFCs) continued to contribute significantly to the economy

The co-lending model of NBFCs & banks may reshape credit delivery. Will it?

A problem which is now being worked upon is to how to marry the low cost of funds from banks with the lower cost of operations of NBFCs and pass this on to borrowers through a blended rate

Expecting better liquidity, NBFCs hope to come out of dark tunnel in 2020

The crippled non-banking financial companies are hoping for better days in the New Year as they expect liquidity condition to improve on the back of various measures announced by the government and the Reserve Bank. Asset quality pressures, liquidity squeeze, asset-liability mismatches, higher borrowing costs, rising defaults levels and rating downgrades made 2019 a tumultuous year for NBFCs or the shadow banks. Having badly lost a year and more since the industry major IL&FS went belly up in September 2018, NBFCs expect that the fiscal and monetary measures will help them come out of the deep tunnel, and to regain their lost importance in the financial system as they have been the key financial intermediaries delivering the last mile credit to the needy all these while. "The outlook is positive as the government and the RBI have already announced a lot of measures to help the NBFC sector," says Shriram Transport Finance Managing Director Umesh Revankar. To alleviate the stress in

Decade in review: How state-owned banks rose to the occasion amid crisis

At the start of the decade, the government was busy infusing stimulus packages to revive various sectors affected by the global credit crisis

NBFC slowdown due to low demand and lack of market funding, says RBI

The cash crunch among robust NBFCs is mainly due to a financial support from market instruments, rather than from the lenders.

India Inc garners Rs 8.7 trn from markets in 2019, debt preferred route

This was way below than Rs 30,959 crore raked in through main-board IPOs and Rs 2,287 crore via SME segment in 2018

Impact of NBFC failures on banking system has reduced in past 6 months: RBI

Following NBFCs, HFCs were the second-largest borrowers of funds from the financial system with gross payables of around Rs 5.9 trillion and gross receivables of only Rs 33,110 crore as of end-Sept

Impact of NBFC failures on banking system has reduced in past 6 months: RBI

Following NBFCs, HFCs were the second-largest borrowers of funds from the financial system with gross payables of around Rs 5.9 trillion and gross receivables of only Rs 33,110 crore as of end-Sept

NBFCs' gross NPA ratio rises from 6.1% to 6.3% in Sept: RBI report

Non-bank lenders witnessed stress in their asset quality in the first half of the current fiscal, with gross NPA ratio increasing to 6.3 per cent in September 2019 from 6.1 per cent in March, according to an RBI report. However, the net NPA ratio of non-banking financial companies (NBFCs) remained steady at 3.4 per cent between end-March 2019 and end-September 2019, RBI's Financial Stability Report showed. As at end-September 2019, the capital to risk assets ratio (CRAR) of the NBFC sector stood at 19.5 per cent, lower than 20 per cent as at end-March 2019. The report said while the importance of NBFCs in credit intermediation is growing, the IL&FS episode brought the focus on the asset liability mismatches of non-bank lenders, which poses risks to the sector as well as the financial system as a whole. To address this, the RBI introduced the liquidity coverage ratio (LCR) requirement for all deposit-taking and non-deposit taking NBFCs with an asset size of Rs 5,000 crore and ...

Improve corporate governance to lift economic efficiency: RBI to India Inc

Comments come at a time when many promoters of companies are under regulatory scanner

Bank-backed broking houses expect client influx after Karvy fiasco

Trust deficit after Karvy fiasco and access to margin facility to drive shift of investors

Slowdown blues: Bank credit growth may fall to 6.5-7% in FY20, says Icra

According to ICRA, even in a high-growth scenario, wherein the second half of FY20 sees the incremental bank credit rise to Rs 6.5-7 trillion, there will still be a 40-45% year-on-year (YoY) decline

Five-fold increase in dollar bonds in 2019, firms raise $23.6 billion

Experts say even as foreign investors discriminate between higher and lower-rated issuers, the high-yields market has started to take shape overseas

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

Credit Suisse Wealth Management sees mid-teen growth in Nifty earnings

Within the markets segments, they do not forecast a major underperformance by the mid-caps in 2020 given the valuation comfort

Does IBC work for financial firms?

The economy might be better off with a dedicated legal regime for the resolution of financial service providers and financial market infrastructure

Is IBC in ICU?

Senior judges need briefings on economy-wide consequences of their decisions

Shadow banking crisis: NBFCs' asset quality under stress as profit slips

In the first half of FY20, asset quality of the sector showed further deterioration with slight increase in GNPAs.

Credit growth, NPA reduction to depend on pace of economic revival: RBI

Credit to the commercial sector shrank by Rs 52,971 crore during April-September this calendar, or in the first half of 2019-20, from an expansion of Rs 3.66 trillion in the same period a year ago