Equitas was roiled by the problems in the micro finance sector post demonetisation, and is still feeling the pain. AU Finance on the other hand, has been plodding steadily in its new avatar as a small bank. So, do you buy them?
"The Financial Resources and Management Committee of the board of directors of the company... will consider the allotment of secured redeemable non-convertible debentures having face value of Rs 10 lakh each for Rs 200 crore on a private placement basis," Manappuram Finance said in a BSE filing.
Ahead of the The Researve Bank of India's monetary policy meeet, interest rate sensitive stocks including the likes of real Estate, NBFCs and auto stocks were trading in the green while banking stocks were mixed with SBI trading positive and ICICI Bank, HDFC Bank and Axis Bank in the red.
Most NBFCs lend in small ticket sizes and are more focused on consumption-based lending. The onus of reviving investment should therefore not be expected from this segment.
The notification is a precursor to the much-delayed final guidelines that the RBI, the banking regulator, will soon release for regulation of P2P lending in India.
NBFCs have recorded much higher annualised growth of about 14 per cent in credit compared to banks.
Payworld, a nine-year old fintech firm, provides digital transaction services like mobile recharge, e-payment, railway reservation and remittances facilities.
Till July this year, pledging of shares was seen in as many as 3,072 of the 5,291 BSE-listed companies, according to data compiled by the exchange.
Irrespective of whether or not the rich investors make money, NBFCs have been making money hand over fist in what now seems to have become a zero risk game for them.
The need for a fresh approach to gold is imperative. Here are a few recommendations which can be used to sort out gold trade.
Nomura believes that Q1FY18F PPOP challenges will continue and expects stable asset quality for rural financiers and stable stress levels for corporate banks with buys on BoB, Axis Bank and Shriram Transport Finance.
The Small Finance Bank aims to build a full-fledged retail franchise in the next 3-5 years as is sets stage to go public on June 28 with its initial public offer (IPO) to raise Rs 1912 crore
The latest such player is Incred. Backed by Deutsche Bank's former co-CEO Anshu Jain, it lends to individuals and small- and medium-sized enterprises (SMEs) including start-ups.
In an interview to CNBC-TV18, Santosh Singh, Head of Research India at Haitong Securities shared his readings and outlook on a few of the NBFCs.
Sridhar, who has worked with the Sriram Group since 1985, will be taking over from Vimal Bhandari who led the firm since 2011. Bhandari will remain on the board of IndoStar and stay as a shareholder, a company release said.
While the economy’s dependence on bank credit has fallen, there is a risk of future growth being imperilled because banks have funded capacity creation and other sources of funding are shallower.
Gautam Shah of JM Financial believes that the current bull market cannot be derailed by smaller developments. He expects the Nifty to bottom out soon and touch 9500 by May.
RBI observed that the companies have violated various provisions of the Fair Practices Code guidelines and thereby issued a show cause notice to both.
The brokerage house believes that the NBFC is taking the right steps and there will be short-term pain due to them, but in the long run it will be a positive for it.
Mahesh Patil of Birla Sun Life AMC sees companies with good earnings visibility to be a key to the market and domestic-focussed ones will see a pick up in results. He prefers consumer discretionary, NBFCs and metals from a long term perspective.
Rashesh Shah of Edelweiss Financial Services believes the market seems to be settling at a fairly strong base. He now sees strong credit growth coming from outside of the banking arena.
"While the 90 + days delinquency rate in the commercial vehicle (CV) loan segment largely stabilised in the first half of the fiscal year, such delinquencies should build up in the near-term due to the adverse impact of note ban and tighter recognition norms for NPAs," Moody's vice-president and senior analyst Alka Anbarasu said in a report today.
The massive subscription pushed up the borrowing cost for HNIs as it meant fewer shares allotted. But in the end, it was well worth the risk.