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Shriram Finance plans to raise $1 bn from overseas in next 6 months

NBFC Shriram Finance plans to raise USD 1 billion (about Rs 8,300 crore) from overseas in the next 6 months to fund its business growth. "We are planning to raise USD 300 million in the next few weeks, may be by October and rest USD 500-700 million during the remaining part of the current financial year," Shriram Finance Managing Director and CEO Y S Chakravarti told PTI. The fund raise would also include loans from development financial institutions like Asian Development Bank, Kfw, and United States Development Finance Corporation (DFC). The timing would depend on market conditions, he added. To fund its business growth, the Non-Banking Financial Company (NBFC) raises resources from diversified sources like public deposits, bank finance and raising money from domestic markets. On the loan growth, Chakravarti said, it is expected to increase 15 to 16 per cent during the current financial year. The company's Assets Under Management (AUM) stood at Rs 2.33 lakh crore at the end of J

Delinquencies in microfinance sector may push NBFC-MFI credit cost: ICRA

Increasing delinquencies in the microfinance sector is likely to push up the NBFC-MFI credit cost to 320-340 bps in 2024-25 from 220 bps in the previous financial year, according to an Icra report. Non-banking financial companies microfinance institutions' (NBFC-MFIs) AUM growth is also likely to moderate to 17-19 per cent in the current financial year from 29 per cent in 2023-24 amid rising concerns about asset quality, it said. The report said the robust growth in the last two years has accentuated concerns about potential overleveraging of borrowers in certain regions. "Further, farmers' protests and the Karz Mukti Abhiyan in certain regions, especially Punjab and Haryana, have impacted collections and the asset quality. "This, along with climatic conditions and operational challenges, including employee attrition, would keep the asset quality under pressure in the near term. As per Icra's estimates, non-performing assets (NPAs) have increased by 30 bps in Q1 FY2025," it ...

NBFCs may soon join technology credit wave on UPI-like innovation

RBI likely to allow access to both legacy, fintech NBFCs

Debt exposure of domestic banks and NBFCs in Adani Group increase to 36%

Indian lenders, including domestic banks and non-banking financial companies, have extended Rs 88,100 crore to the Adani Group, out of its total debt of Rs 2,41,394 crore as of March 31, 2024

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

Alphabet-backed NBFC Aye Finance to launch Rs 2k cr IPO in a year: Report

Focused on small and medium enterprises, Aye Finance has roped in four arrangers for its upcoming IPO

Account aggregator ecosystem clocks 100 million consents on framework

With 1059% growth, India's AA ecosystem is the fastest growing open finance ecosystem in the world

RBI flags breach of regulations by some NBFC-P2P lending platforms

Bars credit enhancement; caps aggregate exposure at Rs 50 lakh

Mahindra Finance names Bijoy Thaplial CBO, Mod Narayan Singh as CCO

Thaplial will lead the vehicle leasing and subscription business, Quiklyz, while strengthening execution strategy across all payment products

RBI clears Tata Capital's conversion into NBFC investment credit company

The appointed date for the scheme is effective April 1 this year and is expected to take 9-12 months to consummate

India's biggest shadow bank Bajaj Finance aims to borrow $500 million loan

The funds will be raised under the Reserve Bank of India's external commercial borrowing route, which caps the interest rate at 500 basis points over the benchmark rate

Reserve Bank of India tightens HFC norms to bring them on a par with NBFCs

The RBI stated that the norms have been revised to harmonise the guidelines for NBFCs and housing finance companies

Hero FinCorp files papers with Sebi to raise Rs 3,668 crore via IPO

Hero FinCorp, the financial services division of two-wheeler manufacturer, Hero MotoCorp, has filed preliminary papers with capital markets regulator Sebi to raise Rs 3,668 crore through an Initial Public Offering (IPO). The proposed IPO is a combination of a fresh issue of equity shares worth Rs 2,100 crore and an Offer For Sale (OFS) of Rs 1,568 crore by investor shareholders, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday. Those selling shares in the OFS are -- AHVF II Holdings Singapore II Pte. Ltd, Apis Growth II (Hibiscus) Pte. Ltd, Link Investment Trust (through Vikas Srivastava) and Otter Ltd. Proceeds from the fresh issue will be used to increase the company's capital to meet future funding needs for lending activities. Hero FinCorp is a NBFC offering a diversified suite of financial products catered primarily to the retail, micro, small and medium enterprise (MSME) customer segments in India. As of March 2024, the NBFC firm had assets under ...

Piramal Finance eyes overseas bond market for funding diversification

The diversified non-banking finance company (NBFC) aims to increase its borrowing from international sources to 10 to 12 per cent over the next 2-3 years, up from the current 4 per cent

Group representing NBFCs seeks approval to offer credit through UPI

Industry should be 'permitted to carry out certain activities restricted to banks', says FIDC

NBFCs' consumer, gold loan sanctions shrink QoQ in Q4 FY24 after RBI action

Regulator last year hiked risk weights for unsecured loans and put curbs on IIFL Finance, a large player in gold loan business

Nine NBFCs including Fino Finance surrender certificate of registration

Ujjivan Financial Services Ltd surrendered the CoR as it ceased to be a legal entity due to amalgamation

Finance world's question to self: Are there too many regulators within?

From fintech to urban cooperatives, a host of industry associations have expressed interest in becoming self-regulatory organisations

No change in strategy: Paytm denies reports of opting out of licences

Payment gateway and digital wallet service provider Paytm has decided to not re-apply for an NBFC licence and stop experiments in Payment Aggregator Cross-Border (PA-CB)

NIIF-backed Aseem Infra Finance to raise Rs 1,000 crore in equity in FY25

At present, NIIF holds a 59% stake, followed by 31% held by the Government of India, and SMBC holds the remaining 10% stake