Public Sector Nbfcs

Banks, NBFCs' credit growth to see steady slowdown in FY25, says ICRA

Regulatory warning, tight funding influence strategy

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

Ireda loan grows to Rs 9,136 cr in April-June; disbursements rose by 67.6%

Public sector non-banking financial company IREDA on Monday said it posted manifold growth in its sanctioned loan to Rs 9,136 crore during April-June FY25. Loan disbursements also rose 67.61 per cent to Rs 5,320 crore in the period under review from Rs 3,174 crore in the year-ago period. The total loan book outstanding as of June 30, 2024 was at Rs 63,150 crore, up 33.77 per cent over Rs 47,207 crore in April-June FY24, IREDA said in a statement. Pradip Kumar Das, CMD, IREDA, said: "The first quarter underscores our commitment to accelerating the deployment of renewable energy solutions in India. The substantial increase in loan sanctions and disbursements reflects our proactive approach in supporting projects that contribute to India's renewable energy goals." Indian Renewable Energy Development Agency (IREDA), under the Ministry of New and Renewable Energy, has been engaged in promoting, developing and extending financial assistance for setting up projects related to new and ...

REC, PFC, IRFC zoom over 200% in FY24. Time to exit PSU stocks?

A K Prabhakar, head of research at IDBI Capital, too remains selective and suggests investors exit power sector stocks such as REC and PFC where the run up has been sharp

LIC targets double-digit growth, plans 3-4 products for FY24: Chairman

Insurance behemoth Life Insurance Corporation (LIC) has lined up 3-4 product launches in the coming months with a view to achieve double-digit growth in new business premium in the current financial year. "We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products," LIC Chairman Siddhartha Mohanty told PTI in an interview. LIC is going to launch one product in the first week of December, he said, hoping that it will attract a lot of traction in the market. Sharing some features of the new product, Mohanty said it will provide assured returns and after maturity, the policyholder will get 10 per cent of the sum assured life long. He exuded confidence that the new product will create disruption in the market as everybody wants to know how much he or she is paying and the returns one would g

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

Indian private credit funds, non-bank lenders filling gap left by banks

Private credit funds lend to these companies at 12%-18%, splitting transactions into tranches. The riskiest of such credit can yield up to 20%-24%

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

Digital lenders seek cap on default loss guarantee models from RBI

They suggested that the central bank could look at a reasonable cap to the FLDG models, given RBI's concerns of around build-up of systemic risk and 100% risk transfer rather than banning it outright

Regulating NBFCs like banks to impair lending model: FIDC to FM Sitharaman

According to the memorandum, if NBFCs are to be regulated like banks, then the typical NBFC model of lending will suffer which will have an impact lending to the unbanked/ underbanked segment

ICICI Pru, 14 insurance firms evaded Rs 824 crore input tax credit

Officials said further investigation revealed that other insurance companies and NBFCs also exploited a similar route to avail of ineligible ITC

Finance Ministry permits state-owned NBFCs to issue letter of comfort

Modifying its earlier order, the finance ministry has permitted state-owned NBFCs to issue 'Letter of Comfort (LOC)' to banks for for fund tie-up for infra projects. Earlier in March, the finance ministry had asked other ministries and departments not to issue 'Letter of Comfort' to any hired entity for undertaking projects on their behalf, as part of efforts to improve transparency in fiscal management. "In view of the foregoing and considering that the CPSE-NBFCs are important players in the infrastructure sector, it has been decided that CPSE NBFCs may issue LOCs," an office memorandum issued by the finance ministry dated June 10 said. The memorandum posted on the the finance ministry website on Monday laid down certain conditions which include that lender should be a NBFC (Non-Banking Finance Company) registered with RBI. NBFCs should be involved in infrastructure sector and LOCs should be provided by banks only for opening letter of credit for supply of goods and services by .

LIC ups stake in Capri Global to over 7% with Rs 221 cr investment

LIC has increased its stake in non-banking finance company Capri Global Capital, to over 7% from 5% earlier, during the February-June period with an investment of over Rs 221 cr, LIC said

Limited bank funding drags Impact NBFCs' growth: CIBIL assessment

Impact NBFCs will need Rs 58,000 crore equity, according CIBIL assessment

NBFCs, fintech companies urge FM Sitharaman to enhance lending facilities

NBFCs and fintech players have urged Sitharaman to enhance the lending facilities by three to four years

Credit guarantee scheme for NBFC papers extended by three months

Greater flexibility now given for purchasing AA and below-rated papers

Covid-19 impact: Banks raise concern over fresh NPAs of Rs 50K crore

The banks are expected to start credit operations from April 20, in a bid to help a staggered restart of the economic activities

Part Panglossian, part floccinaucinihilipication: Governor Das marches on

Sachin Chaturvedi, a member of the Central Board of RBI, describes Das as a person who brings in pragmatism, commitment, transparency and sincerity to the table.

Realty stimulus: Investors must not bet on NBFCs just yet, say experts

Many non-banking housing financiers have, over the past few months, witnessed deterioration in their wholesale real-estate asset loan book, warranting higher provisioning and thereby limiting growth

Financials rally up to 7% on report govt could notify NBFC resolution rules

However, some financial stocks, with weak fundamentals, missed the rally. For instance, Indian Bank, YES Bank, and Indiabulls Ventures slipped up to 9 per cent.