Nbfc Investment

Nomura ups target for Bajaj duo, M&M Fin, says rate cut positive for NBFCs

Regarding the implications of a rate cut for NBFCs, analysts noted that asset composition is more crucial than liability composition.

Funding constraints to hinder NBFCs' growth after two strong years: ICRA

The report said that the sector's AUM, which stood at approximately Rs 47 trillion in March 2024, is projected to exceed Rs 50 trillion in the current financial year

RBI's risk weighting hike: Mutual fund funding to NBFCs continues to grow

Stays above Rs 2 trillion mark for second consecutive month

Sebi puts SK Finance's Rs 2,200 cr IPO in abeyance, no reasons disclosed

Jaipur-based lender had filed its preliminary papers with the capital markets regulator in May this year

NBFC business has to hit the reset button after RBI strengthens norms

Shadow banks will have to review how they lend money as Mint Road puts a squeeze on their credit lines

Bajaj Finance picks 26% stake in fintech firm Pennant Technologies

Pennant will become a related party of Bajaj Finance after completion of deal

NBFCs need to diversify funding sources, reduce reliance on banks: RBI

NBFCs' reliance on banks increased, particularly for NBFCs in the upper layer (NBFCs-UL), whose direct bank borrowings have grown steadily

Funding constraints may hamper NBFCs' loan growth this fiscal: Report

With most non-bankers reaching the maximum funding cap from banks, their projected 16 per cent loan growth may be impacted, leading to margin compression for the sector this fiscal, according to a report. Bank funding to NBFCs has grown rapidly to Rs 13.1 lakh crore in February 2023 from a low Rs 3.9 lakh crore in FY17, growing at a CAGR of 22 per cent, which is double the overall bank credit growth, an India Rating report said. The rising share of bank funding has helped NBFCs offset the sluggishness in capital markets, which remained lukewarm during the pandemic and pricey during the first nine months of FY23, it added. Non-banks, including housing financiers, will face increased funding challenges in FY24, which is likely to impact their loan growth target that was earlier projected to clip at 16 per cent, the agency said without quantifying the impact or how much will be the loan growth. According to the agency, the only silver lining is the exit of the largest NBFC, the mortga

Risky lending: Share of subprime borrowers higher at PSBs, shows data

The share of such loans declined between September 2020 and March 2022 in private banks and NBFCs but rose for public sector banks

Invest in MNC funds for exposure to high-quality businesses: Experts

Since valuations are higher in this space, a 7-yr horizon with 10% capital outlay can be looked at

NBFC yields yet to show contraction in spreads after govt measures

Experts believe spreads will contract as the credit lines start getting utilised, and banks regain confidence about NBFC papers for the long term

Here's why NBFC stocks may turn into a heap of trouble for investors

NBFCs may be forced to dig into their cash reserves if systemic liquidity support dries up

Reopening of services to depend on permission from local authorities: NBFCs

Although the government has allowed NBFCs, HFCs to start operations, they have not allowed resumption of operations in hotspots and have also not permitted field activities

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

FM's measures should help revive demand in festive season: Bajaj Finance MD

From the perspective of fiscal consolidation, the announcements do not impose significant extra fiscal burden, says Rajeev Jain

NBFCs offer higher deposit rates than banks; invest after ascertaining risk

If you are comfortable with the rating, invest up to 10 per cent in a single company's paper