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 →
2018 was a blowout year for Non-Banking Finance Companies (NBFC) on all counts. NBFCs, though not all of them, paid a heavy price for spreading their cheese too thin. In their bid to step into the space vacated by capital-constrained Public Sector Banks (PSBs), NBFCs went on reckless credit expansion, without taking into account the … Read More →
After the conflict between the government and the Reserve Bank of India on the issue of providing liquidity to the non-banking financial companies or NBFCs, the RBI on Friday allowed banks to provide a lifeline to some of the NBFCs through the partial credit enhancement (PCE) route. In a notification issued on Friday, the RBI … Read More →
Conversion into small finance banks (SFB) would actually prove detrimental for listed non-banking financial companies (NBFCs) and microfinance institutions (MFIs) in terms of their net interest income (NII) in the initial years. Analysts feel NII of SFBs like Ujjivan Financial Services, Disha Microfin and Equitas may gradually fall from current 47.8 per cent to 27.5 … Read More →
NBFC’s RoE to improve, cost of borrowing to fall: Capital First In an interview on CNBC-TV18, V Vaidyanathan of Capital First said that the cost of borrowing is expected to fall by 100 basis points and all NBFCs will see improvement in return on equity (RoE) due to the change in bond pricing. Moderation in … Read More →
The NBFC stock dream run may be coming to an end: Analysts Non-banking financial companies (NBFCs) have put up an impressive show the whole of last year with stock prices more than doubling for some. But experts tracking the sector seem to be turning a tad cautious now. Some cite stretched valuations while others point … Read More →