Investors will not be distracted by the question of how companies manage the transition to BS-VI in FY21
After the slew of measures announced in September 2019, markets were anticipating a second wave of supportive policy actions that would ensure quicker revival of the shadow banking sector.
Find out about the changes brought out in the sector and how investors can tread cautiously and ensure their savings grow
A resolution corporation as envisaged by the withdrawn FRDI bill is necessary from a long-term perspective. However, a quicker term fix for the NBFC sector, which would hopefully stoke credit growth, and hence economic growth, would be bringing it under the existing IBC.
The NBFC disbursed loans for 11 percent lesser number of units in the July-September quarter. In terms of value, however, the loan disbursals stood at Rs 463 crore, as compared to Rs 469 crore in the same period last year.
For current financial year, the sale of loans through securitisation is likely to be above Rs 2 lakh crore, fuelled by the government’s partial credit guarantee scheme and targets laid out for public sector banks to disburse funds under the facility.
According to industry sources, CRAs in India are currently witnessing customer churn rate as high as 35 percent, as compared to 8 percent internationally.
DHFL, which has been severely impacted by the NBFC crisis which unfolded late last year following the IL&FS bankruptcy, has defaulted on multiple commitments.
If there is no shortfall of demand, why hasn’t credit picked up yet?
The market-linked mechanism would mean that current promoters go for a stake sale to bring new money into the set up.
India Ratings and Research has revised its sector outlook on non-banking finance companies (NBFCs) from 'stable' to 'negative.' Measures taken by the government and RBI will play out only in the medium-to-long term.
The total flow of financial resources to the commercial sector was also affected by demonetisation
Perceptions about future economic prospects will determine responses to the revival measures.
He said that the challenge is re-instilling confidence in lenders to support growth, since they have limited funding to select high-rated non-banking finance companies (NBFCs) amid a risk averse environment.
Since the NBFC crisis in September 2018 following a loan default by Infrastructure Leasing & Financial Services (IL&FS), annual deposit growth rose to 10.3 percent by June end from 8.1 percent since September last year.
In this episode of the Simply Save podcast, Moneycontrol's Personal Finance Editor Kayezad Adajania gets in conversation with debt market expert Joydeep Sen to get answers for questions that are troubling investors.
In the context of investing, the current fad for Big Data and machine learning seems overblown. Successful investing entails understanding basic probabilities well. While machines can be used to crunch these probabilities, the old-fashioned method of reading annual reports has worked pretty well.
Businesses are discouraged from investing when demand is tepid. We need to watch out for the precursors of a permanent lowering of income expectations by consumers. It is time to shine the spotlight on the structural aspects of the slowdown.
Further defaults and inability to meet its payments on the part of DHFL will again spread fear in the sector. It will set off a fresh round of risk aversion and liquidity squeeze for NBFCs as banks refrain from funding the shadow banking sector.
Chaudhry said that promoters of NBFCs that are in need of capital should look at bringing in equity infusion without further delay.
Financially sound NBFCs should continue to get funds without investors being risk averse, FM Nirmala Sitharaman said.
In terms of contagion risks arising out of a failure of large banks, RBI said that the losses are lower for March 2019 than in March 2018 due to better capitalisation of public sector lenders.
ICICIdirect is of the view that in the current NBFC crisis, banks are the real beneficiaries both in terms of costs and assets
Legally, the asset management company is not supposed to bear any market-related loss.
Rakesh Sharma talks about how the NBFC crisis came about.