NBFCs show signs of recovery as India economy rebounds A stronger shadow banking industry, which has been struggling since a crisis in 2018 when a large financier unexpectedly defaulted, is key to helping staunch further trouble in the economy The fortunes of India’s shadow lenders have been improving amid early signs Asia’s third-largest economy is rebounding from … Read More →
Non-banking financial companies (NBFCs), the financial intermediaries that recently have caught the country’s attention, are an imperative part of the Indian financial system, catering to the diverse financial needs of millions of small firms as well as individuals. Certain sections of the society, primarily the economically weaker sections, for whom banks are perhaps unaffordable and … Read More →
It is dispensable that every person has ample funds to fulfil their concern. The only prime solution that can be looked at is either getting a loan from the bank or from some financial institution. In many cases, people cannot qualify for the norms or requirements of getting a loan, which is when a Non-Banking Financial Company … Read More →
MUMBAI: Private equity (PE) investments into non-banking financial companies (NBFCs) in India are most likely to increase in 2020, even as the sector faces high chances of slipping into distress in the future. “Traditional sources of funding, such as bank lending and mutual funds, have become constrained over the last two years. So, for … Read More →
MUMBAI: The crippled non-banking financial companies are hoping for better days in the New Year as they expect liquidity conditions 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 … Read More →
Para banks would face tighter liquidity, higher funding costs and consequently lower net interest margins (NIMs) in FY20 as they overhaul their balance sheets toward longer-term borrowings, IndiaRatings & Research said in its outlook report on Tuesday. The Fitch-owned rating company expects wholesale financing NBFCs, especially those lending to real estate, micro and small enterprises … Read More →
The woes of non-banking finance companies (NBFCs) are not over yet. Margin pressure, tepid growth, reduced liquidity buffers and delinquencies in select segments will continue to bother NBFCs in FY20 as well. NBFCs may face margin pressure in FY20 due to a rise in funding cost and a decline in growth rates, leading to … Read More →
The Reserve Bank of India has advised non-bank lenders to adjust to the current state of liquidity even as the sector lobbies for bank loans at easier terms for lending to the small and medium enterprises sector which is known for creating jobs. RBI Governor Shaktikanta Das held discussions with leaders from the NBFC sector … Read More →
The liquidity problem among NBFCs is expected to continue for some time and there could be one or two major shocks in the financial services sector in the coming months, Ajay Piramal, chairman, Piramal Enterprises Ltd. (PEL), said on Monday. “One should be ready for one or two major shocks in the financial services sector … Read More →
About a third of the funds borrowed by Indians reach them through para banks, which reach the hinterland or the marginal customer where formal commercial banking hasn’t. This ability to bring formal finance to the doorstep of the unbanked has driven the growth at nonbanking finance companies (NBFC), but 2019 could well alter the operating … Read More →