Page 38 - Nbfcs

Increased forced lending to NBFCs can land banks in trouble: Fitch report

NBFC disbursements have declined steeply as a result, with knock-on effects to other sectors, particularly consumption

Banks to get two-year guarantee to purchase 'pooled assets' of NBFCs

The government has allowed the NBFCs and HFCs to buy back their assets 'after a specified period of 12 months' as a repurchase transaction, on a right of first refusal basis

On-lending by NBFCs to 'needy' segments to be priority sector loans: RBI

Under the revised on-lending model, banks can classify only the fresh loans sanctioned by NBFCs out of bank borrowing

Housing finance companies to be treated as NBFCs; come under RBI oversight

Finance Minister Nirmala Sitharaman in her maiden Budget 2019-20 speech in early July had announced that the National Housing Bank (NHB) will not remain as the regulator for the HFCs

Govt issues guidelines for Rs 1 trillion partial guarantee scheme for NBFCs

The Centre has issued guidelines on operationalising Rs 1-lakh crore partial guarantee scheme under which public-sector banks can purchase high-rated pooled assets of financially sound non-banking finance companies (NBFCs). NBFCs, including housing finance companies (HFCs), came under stress following series of defaults by the group companies of IL&FS in September last year. To help the sector come out of the stress, Finance Minister Nirmala Sitharaman in the Budget announced support for fundamentally sound NBFCs in getting continued funding from banks. "For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rs 1 lakh crore during the current financial year, the government will provide one-time six months' partial credit guarantee to public sector banks for first loss of up to 10 per cent," she had said. In pursuance of that the finance ministry last week released a detailed guidelines for this with the objective to address temporary asset ...

Reserve Bank bans NBFCs from charging loan foreclosure penalties

Foreclosure charges are part of the fee income for any lender and adds to its bottom line

NBFCs lure retail investors with high yields as banks tighten purse strings

Tata Capital Financial Services, a subsidiary of Tata Capital, said it would hit the market with tranche 2 of its NCD to raise up to Rs 4,126 crore

NBFCs to receive more liquidity support as RBI raises exposure limit

This has been done to increase the credit flow to certain sectors which contribute significantly to economic growth in terms of export and employment

Rate cuts to continue

Further rate cuts are contingent on the non-banking financial company sector recovery prospect

We will not do business with certain groups: Axis Bank's Amitabh Chaudhry

He has since steered the bank on to a conservative path, eschewing needless risks. He's been candid enough to admit that the exposure to infrastructure sector in the past proved to be an Achilles heel

CEOs bank on festive cheer; India Inc hopes for improvement in second half

Demand to pick up from festival season next month, say corporate leaders

Housing finance companies get Rs 10,000-crore liquidity infusion

Finance Minister Nirmala Sitharaman will meet heads of state-owned and private banks on Monday to discuss the ongoing liquidity crisis in NBFCs

HDFC Q1 net profit rises 46% to Rs 3,203, interest income up 11%

On a consolidated basis, the housing financier's total revenue from operations stood at Rs 23,239.82 crore in Q1

DSP Mutual Fund initiates legal action against DHFL to recover dues

Litigation may delay housing financier's resolution plan

Don't fall for under-construction stock, ready-to-move homes a better bet

With banks saddled with NPAs, NBFCs had stepped into the breach

Banning pesky calls from NBFCs for offering loans may not be ideal: RBI

RBI rejected suggestions given by RTI activist on operations of NBFCs, like to ban calls luring customers for unsecured loans, capping interest rates and putting a ban on financing of NBFCs by banks

Account aggregator to make applying for loan less cumbersome for users

An app will take a user's consent to share financial data with organisations

NBFC-HFC lending to reality players down 48% in FY19 at Rs 27K cr: Report

Lending to real estate developers by non-banking finance companies and housing finance firms (HFCs) fell by almost half to about Rs 27,000 crore because of liquidity crisis triggered by IL&FS default in September last, according to a report by property consultant JLL. With large non-banking finance companies (NBFCs) and HFCs shying away from fresh lending to real estate developers, smaller ones have come to the rescue of builders and provided Rs 4,000 crore fund during the second half of the last financial year, it added. "Default by leading NBFC - Infrastructure Leasing & Financial Services (IL&FS) in scheduled payments led to a liquidity squeeze in the real estate sector since September 2018," JLL India Country Head and CEO Ramesh Nair said. NBFC and HFC funding was normal during April-September 2018, but due to the crisis, the lending slowed down substantially during the second half of 2018-19, considered to be the peak period for lending activities. "In 2018-19, net ...

Govt's steps to ease NBFC liquidity crisis too short-term: Fitch report

The report, however, said NBFCs will benefit more from the Rs 70,000 crore recapitalisation of state-owned banks, which will increase their capacity to lend more

Overdraft against gold offers businessmen flexible repayment options

Industry experts feel that the rise in disbursal of gold loans is due to the NBFC liquidity crisis