NBFCs are likely to be selective in passing on the reduced funding costs to borrowers, which will help support their margins, the ratings agency has said
The company will be launching new products in Q1FY27 as part of the Lakshya 31. These products will be mixed of secured and unsecured, Roy said.
According to the investor, the total borrowing of the bank stood at Rs 5.47 lakh crore as on March 31, 2025, as compared to Rs 6.62 lakh crore as on March 31, 2024.
The finance minister emphasised that reducing the fiscal deficit from 5.6 percent of GDP in FY24 to 4.9 percent in FY25 will "not only keep the bond yields in check but also manage borrowing costs"
On November 16, 2023, the RBI increased risk weights on unsecured consumer credit and bank credit to NBFCs to pre-empt build-up of any potential risk in these segments.
So far in the October-December quarter, the amount raised by state governments is higher than the indicative amount
Aditi Nayar, the chief economist and head of research at Icra Ratings, said the drawdown is a sharp 24 per cent more than indicated in the quarterly borrowing calendar
The yield on the benchmark 10-year G-secs also declined in the week by 4 bps to 7.23 per cent from 7.27 per cent last Tuesday
The non-banking lenders are poised for an expansion aided by strong capital buffers, adequate provisions and sufficient liquidity on their books, the article 'A Steady Ship in Choppy Waters: An Analysis of the NBFC Sector in Recent Times' said.
A slump in long-term interest rates since Britons voted to quit the European Union is the clearest financial market verdict on the global impact of 'Brexit' - yet another body blow to world growth that may now need a game-changing policy response.
C Ilango, MD of Can Fin Homes Limited expects benefits of product mix and low borrowing cost to continue in coming two quarters.
S Venkatachalam, managing director, Orient Green Power, says out of the Rs 250 crore raised, Rs 125 crore will be used for expanding projects, while the rest will be used for retiring the high-cost bank loans and getting longer tenures which will lead to larger savings
Speaking to CNBC-TV18, Richard Jerram, chief economist, Bank of Singapore says that while the weak currency is going to boost exports, the high borrowing cost is likely to weigh down on the industrial production.