Microfinance Lenders In Assam See The Biggest Jump In Stressed Assets In Q3. Meanwhile Mannapuram raises 90 day paper at 6.12%. Shapoorji is at close to 10%. Piramal 29 day paper at 9.1% Patanjali Ayurved 90d at 10.45%. View: Banking sector may meet telcos' fate. Here's how to avert it. By: Gaurav Gupta With the opening up of the Indian economy in the 1990s, free markets catapulted Indian GDP growth rates.
Take telecom. The entry of multiple players drove tariffs down, increasing telecom penetration, making India today, with over one billion subscribers, second only to China. India has also been at the forefront of the mobile evolution, with the consumer being the biggest winner. However, even in telecom, with three players remaining and with a potential risk of being down to two, the consequences of diminishing competition are telling. The telecom story can be a precursor to other sectors, especially banking and financial services.
Davos 2020: Sanjiv Bajaj Sees ‘Some Uptick’ In Consumer Lending Business Retail Loans To Double To Rs 96 Lakh-Crore In Five Years, Says Crisil. Altico Capital: The Behind-The-Scenes Story Of Altico Capital’s Default. RBI Cuts Risk Weight On Consumer Credit To 100% HDFC interest rates: Same mechanism for loans, liabilities: HDFC may link rates to external benchmarks. MUMBAI: Housing Development Finance Corp (HDFC Ltd), the country’s largest mortgage lender, is considering a plan to link interest rates to external benchmarks, although the Reserve Bank of India (RBI) hasn’t mandated this for housing finance companies (HFCs).
The home financier is looking to link both loans and liabilities as this will protect interest margins, HDFC vice chairman Keki Mistry told ET. RBI: Systemically important NBFCs to come under tighter RBI scrutiny. About 275 systemically important non-bank lenders, which would include entities from the Shriram Group and the BajajNSE 0.42 % twins, will face tighter central bank scrutiny, particularly on their interlinkages with commercial banks, as Mint Road seeks to ensure greater stability in India’s credit landscape.
Together, these NBFCs account for 85% of the total assets in the sector, and are at the forefront of ensuring last-mile credit to Indians buying television sets, air conditioners, home gadgets, or cars. NBFCs constitute around 12% of the total assets in the banking and non-banking space. AAA Corporate Bonds: Liquidity In Plenty. But Even The Best Of Corporates Aren’t Benefiting. Government Plans Debt Waiver For ‘Small Distressed Borrowers’ Under Insolvency Law. Protect Your Expensive Footwear With Shoes Insurance From Bajaj Finserv. Business Wire India is the only Indian news distribution platform to partner with ANI, PTI, IANS, and UNI Testimonials - Whenever we have something important to tell, Business Wire India is often our first point of call, Rajnish Wahi, Senior VP, Corporate Affairs & Communication, Snapdeal.
I define Business Wire India as a facilitator for the communications industry, Sudeshna Das, Executive Director, ComConnect. RBI bans NBFCs from charging loan foreclosure penalties. The Reserve Bank on Friday barred non-banking finance companies from charging pre-payment penalties or foreclosure charges from individual borrowers.
"NBFCs shall not charge foreclosure charges/pre- payment penalties on any floating rate term loans sanctioned for purposes other than business to individual borrowers, with or without co-obligants," the central bank said in a notification, without specifying from when the new ruels will be effective. The central bank said the relevant rules governing the same have been updated to reflect the change. India Slowdown, NBFC Crisis Pose Fresh NPA Scare For Banks, Says Moody’s. #Whatsappfwd @HDFC_Bank Aditya Puri at conversation with a @Bajaj_Finance dealer… India Closely Monitoring 50 Shadow Banks for Signs of Contagion. Sanjiv Bajaj’s next big move RBI Financial Stability Report: NBFC Crisis Has Imposed Greater Market Discipline. HDB Financial: Is HDFC Bank’s ‘Mini-Me’ On The Fast Track To Growth? In 2007, HDFC Bank Ltd., now the country’s most valuable lender by market capitalisation, had a choice to make.
The bank held a licence to start a non-banking financial services company, which it had not really used till then. The decision to make was whether that licence should be surrendered or if the bank could find a way to use it to build its network. Faced with this question, HDFC Bank’s Chief Executive Officer Aditya Puri called for a meeting with senior leaders at the bank, said a person who was part of the team that eventually went on to launch the NBFC’s operations. The decision that emerged from that meeting was that an NBFC could complement the bank, the person quoted above said. The NBFC could do business that the bank was not allowed to do or chose not to do for some reason. Twelve years later, it appears that the decision paid off. HDB Financial’s CEO G Ramesan declined to comment on the story. MS talks about a potential NPL cycle in FY20/FY21.… India Ratings and Research Private Limited : India's Most Respected Credit Rating and Research Agency : FY19: Stable Performance in CV, CE Loans; Improvement in Tractor & MFI Loans; Caution on LAP.
IL&FS Crisis: Shadow Lender Crisis Averted, Says HDFC Bank’s Aditya Puri. Ratings Downgrades: What does it mean for banks and NBFCs? Over the weekend, rating agency CARE downgraded the long-term debt of Reliance Home Finance and Reliance Commercial Finance to default status or ’D’ rating.
Rating agency ICRA also downed the rating on commercial paper of Reliance Capital to sub-investment grade. Below charts also mentions some MF fund names having high exposure. Should urge everyone to read the latest CS report on NBFCs to understand more… L&T Finance. Some NBFCs facing difficulty; Steps will be taken if 7 when required… #RameshIyer, VC & MD, M&M Fin Svcs says decline in disbursement growth QoQ due to constrained disbursement to SME segment; #Auto sector disbursement has registered 11% YoY growth in Q4 @latha_venkatesh @koth.
This Is How Much NBFCs Have To Repay Mutual Funds In Three Months. Are Manappuram, Muthoot The New Safe Havens Among NBFCs? Lending To MSMEs Grows At A Faster Pace, Says Report By CIBIL and SIDBI. L&T Finance, SCUF, Muthoot Homefin, Magma Fincorp NCDs on offer: Which is the best pick? Three of the four non-convertible debenture (NCD) issues announced recently have opened for subscription.
The NCD issues of L&T Finance (LTF), Magma Fincorp Shriram City and Muthoot Homefin (subsidiary of Muthoot Finance) opened on April 8, while that of Shriram City Union Finance opened on April 5. Between the four firms, there are 38 options across tenures of two to 10 years for investment. Analyst Mohalla sur Twitter : "IBULHSGFIN Concall Highlights: (Indiabulls Housing Finance Limited and Lakshmi Vilas Bank Merger Announcement) Management on call: Mr. Sameer Gehlaut-Chairman, Mr. Gagan Banga (VC & MD) Mr. Sachin Chaudahry (Executive Direct. Lakshmi Vilas Bank approves merger with lndiabulls Housing Finance. NEW DELHI: Private lender Lakshmi Vilas BankNSE 4.98 % on Friday said its board has approved a scheme of amalgamation with lndiabulls Housing Finance.
In a share swap deal, Lakshmi Vilas Bank (LVB) shareholders will get 14 shares of Indiabulls Housing Finance for 100 held. Tamil Nadu-based LVB has total assets of Rs 40,429 crore and capital and reserve of Rs 2,328 crore as March 31, 2018, Indiabulls Housing Finance had total assets of Rs 1,31,903 crore and consolidated net worth of Rs 17,792 crore at the same date. The net worth of amalgamated entity will be Rs 19,472 crore for the nine month period ended December 31, 2018 with 14,302 employes and a loan book of Rs 1,23,393 crore.
Amalgamated return on equity and assets stood at 19.20 per cent and 2.0 per cent, respectively. Nine-month operating profit and profit of the amalgamated entity stood at Rs 4,630 crore and Rs 2,455 crore, respectively. AUM of retail NBFCs saw ‘sharp’ slow down in growth in Q3 FY19. The assets under management (AUM) of retail non-banking finance companies (retail NBFCs) witnessed a sharp slowdown in growth in Q3 (October-December) FY2019 as entities facing tightened liquidity moderated their incremental disbursements, according to credit rating agency ICRA.
Three choices before wobbly NBFCs. Neither billionaires nor poor can escape India’s NBFC funding crisis. When India’s shadow lenders sneeze, many others catch a cold. Debt concerns have pushed funding costs for non-bank financing companies to multi-year highs in recent weeks. That is bad news for borrowers in the world’s fastest-growing major economy — from poor entrepreneurs getting micro loans for food delivery businesses to property tycoons looking to roll over debt that fuelled a construction boom. The development will make money more expensive for a huge range of enterprises and individuals, at a crucial time for policy makers. Teetering economic activity is already pressuring the RBI to deliver on expectations for a back-to-back interest rate cut in April. And Prime Minister Narendra Modi must avoid economic turbulence ahead of elections next month. Spreads on top-rated five-year bonds of Indian non-bank lenders have risen 75 basis points from the end of August to near their widest levels since 2012, according to data compiled by Bloomberg.
High earnings growth, reasonable valuation makes CreditAccess Grameen a worthy buy. Highlights:- Microfinance sector has demonstrated resilience and offers enormous growth potential- CreditAccess Grameen, the latest to list MFI, is a unique rural financial services play operating at the heart of rural India- Robust loan growth and superior return ratios make it a worthy contender- Reasonable valuation add to the stock’s attractiveness Microfinance institutions (MFIs) have truly come of age. The segment emerged relatively unscathed by the liquidity crisis that engulfed the non-banking finance companies (NBFCs) since September 2018. That doesn’t come as a surprise as MFIs are well placed on liquidity front as compared to other segments of the non-bank finance sector.
One, unlike many other NBFCs, average asset maturity tenure is generally lower than the average liability maturity tenure for MFIs. Two, most MFIs rely on banks for their liquidity needs, which is relatively a stable funding source as compared to mutual funds. Microfinance sector on the growth path. Proposed raising of CAR positive for REPCO, negative for LICHFL and PNBHFL. 636867771071552903 iea 3QFY19 result review financial nbfc 26 02 2019. Has Canfin Homes beat the litmus test of liquidity crisis? India Ratings and Research Private Limited : India's Most Respected Credit Rating and Research Agency : Regulatory Fillip for NBFC Funding.
How India’s Largest NBFCs Fared In The Crisis Hit December Quarter. The fall of the once AAA-rated Infrastructure Leasing and Financial Services Ltd. in September 2018 led to a drying up of liquidity, particularly for the country’s non-bank lenders. The liquidity crunch was at a peak in October and eased only slowly by December, leaving non banking financial companies will little choice but to conserve funds and slow down lending.
Data reported by these firms as part of third quarter earnings shows either a decline in the loan growth or, in some case, an actual drop in lending. The performance differs widely based on individual groups and ability to raise funds from the bond market at a reasonable cost. Conserving Liquidity BloombergQuint compiled data on credit supply from the top ten NBFCs and housing finance companies. Of the five companies that showed loan book growth, two — Shriram Transport Finance Co. Indiabulls Housing saw a 17 percent decline in its loan book outstanding, while Shriram Transport Finance Co. Constrained Funding Environment.
India Ratings and Research Private Limited : India's Most Respected Credit Rating and Research Agency : FY20 NBFC & SF Outlook: Sector to Face Margin Contraction, Growth Moderation; Focus on Reconfiguring Balance Sheet. DHFL: 1.21 lakh crore ka question? Rating agency finally wakes up.… DHFL Share Price: Top mutual funds still have Rs 8,650 crore exposure to DHFL & four group entities. As skeletons tumble out one after another from the closets of highly leveraged companies, domestic mutual funds with exposure to such entities are finding themselves in a Catch 22 situation.