NBFC Loans

As the sector faces these multifaceted challenges, vigilant monitoring and proactive management will be key to sustaining its viability and support for underserved communities

Satisfactory monsoon, soft rates to support growth in H2

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

Home loans sanctions contract 2 per cent; consumer loans grow 30%

Net Interest Income reported 9 per cent growth to Rs 12,532 crore while other income was up 22% to Rs 5555 crore

The printing inks and chemicals specialist Hubergroup India, is engaging with ICICI Bank, HDFC Bank, Axis Bank, Tata Capital, and others to acquire businesses from its German parent company

NBFC reported 26% rise in new loans during the December quarter

NBFC says in filing it is making efforts to sell nearly 50% of its stressed assets

Growth in Semi-urban, rural areas holds up

The RBI norms on an increase in risk weights exclude bank loans to housing finance companies or bank loans backed by priority sector loans (PSL)

Here is the best of Business Standard's opinion pieces for today

Interconnectedness must be watched carefully

Finance Minister Nirmala Sitharaman on Thursday said NBFCs and small finance banks need to remain cautious while lending as suggested by the Reserve Bank. Speaking at 'DATE with Tech' event here, Sitharaman cautioned that NBFCs and small finance banks should respect the red line and should not go too far in their enthusiasm. "Enthusiasm is good but sometimes it becomes a bit too far for people to digest. So as a measure of caution the RBI has also alerted small finance banks, NBFCs to be careful that they don't go too far too soon and face any downside risks later," she said. Reserve Bank Governor Shaktikanta Das on Wednesday had said the central bank's tougher stance on unsecured loans earlier this month is a "preemptive" move aimed at ensuring financial stability. Following a massive rise in unsecured lending and delinquencies, the Reserve Bank on November 16 tightened the norms for unsecured consumer credit, asking banks and NBFCs to assign a higher risk weight. As a result, it

The lending poses a risk for incremental nonperforming loans (NPLs). The increase in risk weights by the RBI is a prudent step, it said

A hike in risk weights may lead to higher interest rates and reduced access to credit for consumers as banks adjust lending practices to meet increased capital requirements

Loans likely to become dearer; marginal impact on bank's capital adequacy ratio

Sequentially, the sanctioned shrunk by 20.3 per cent over the quarter ended March 2023 (Q4FY23), data from Finance Industry Development Council (FIDC)-CRIF showed

Robust loan collections and high credit growth at non-bank lenders led to 60 per cent jump in securitization volumes to Rs 55,000 crore in June quarter, a report said on Monday. This is the highest ever in the first quarter of a fiscal, rating agency Crisil said, attributing the growth to high demand from banks and non-bank finance companies (NBFCs) resorting to securitization as a funding route. Securitisation refers to an activity where a financier or lender transfers future receivables on a loan or a bunch of loans to other financiers which helps with immediate liquidity requirements. During the first quarter, the number of transactions went up to over 250 from 160 in the year-ago period, it said, adding that private and public sector banks continued to be the dominant investors, followed by foreign banks. There were 80 originators and 50 investors which were active during the quarter, the agency said. Securitisation is allowing banks to do two things: keep driving their credit

Growth in sanctions for equipment, commercial vehicles indicates revival of capital investment: Study

Arohan Financial Services Ltd has opened 102 new branches in FY'23 to expand its presence in underserved states of the country, the microfinance company said on Friday. The Kolkata-based NBFC-MFI lender now has 835 branches across 15 states offering a range of financial products and services to low-income customers. The new branches were opened in West Bengal, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Rajasthan, with additional operations in Assam, Bihar, Chhattisgarh, Jharkhand, Karnataka, Maharashtra, Meghalaya, Odisha, Telangana and Tripura. Arohan is investing heavily to expand in semi-urban and rural geographies, providing employment opportunities for rural youth and enhancing access to credit for the financially underserved, the company said in a statement. Our endeavour is to include every underserved household and small business under financial services. As we commence on our ambitious five-Year Vision plan of rapid expansion path to serve 20 million lives by 2027, we