Non Banking Finance Companies

NBFC Q2 earnings preview| PAT to grow 8-28% YoY on stable margins, improving asset quality

Brokerage firms expect asset quality of most NBFCs to remain broadly stable amid better customer selection, stricter credit underwriting, and improved collection efforts.

Fintech NBFCs accounts 76% total personal loan sanction volumes in 9MFY25

The average ticket size is comparatively lower for Fintech NBFCs compared to its peers like other NBFCs and banks. As per report, average ticket size for banks stood at Rs 441,391 till December 2024, and for other NBFCs it stood at Rs 94,430.

RBI makes private placement of NCD regulations for HFCs on par with NBFCs

The revised guidelines shall be applicable to all fresh private placements of NCDs (with maturity more than one year) by HFCs from the date of the circular

A dedicated liquidity window mechanism for NBFCs is the need of the hour

A dedicated liquidity window mechanism or emergency lines of credit from financial institutions can go a long way in addressing NBFCs' concerns

NBFCs increase borrowing via bonds as bank loans become expensive

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.

Few NBFCs with low capital buffers growing at rapid pace warrants close monitoring: RBI report

On an incremental basis, bank lending to NBFCs declined in H2FY24 even as the latter’s overall cost of funds increased, said Reserve Bank of India’s financial stability report

NBFC body to soon write to RBI on new draft project financing norms

On May 3, the central bank proposed to lenders that they set aside higher provisions for under-construction infrastructure projects and asked them to ensure strict monitoring of any emerging stress.

RBI top official asks NBFCs to bolster governance practices

The RBI on May 15 conducted a conference in Mumbai for the Heads of Assurance Functions (i.e., Chief Compliance Officers, Chief Risk Officers and Heads of Internal Audit) of select NBFCs.

RBI deputy governor Rajeshwar Rao cautions NBFCs on P2P lending practices

Some of the business practices of NBFCs' P2Ps lending do not appear to be in line with the regulatory guidelines, Rao has said

Union Bank exposure to NBFCs unchanged after RBI norms, says top official

On November 16, the Reserve Bank of India increased risk weight on consumer credit exposure of commercial banks and NBFCs to 125 percent from 100 percent.

Budget 2024: NBFCs seek funding support, steps to boost financial inclusion

Non-banking finance companies say refinance facilities and a special liquidity window will make more funds available at a lower cost.

Stage 3 loans of NBFCs decline sharply in one year, signalling better asset quality

As per analysts, better repayment by borrowers, efficient recovery by the NBFCs and some write-offs could have contributed to this improved performance.

RBI extends PCA framework for NBFCs to government NBFCs from October 1, 2024

The central bank introduced the PCA Framework for NBFCs on December 14, 2021.

MC Explains | All you need to know about NBFCs and scale-based regulations

The central bank recently removed Shanghvi Finance from the upper layer of NBFC list. What does it mean, what are NBFC layers, and what are scale-based regulations?

NBFCs earnings rise on improved asset quality, high AUM growth

The assets under management of the most NBFCs grew in the range of 18-41 percent in the April-June quarter, however, the high cost of funds is likely to put pressure on their net interest margins

10 non-banking finance companies surrender their licences to RBI

The two entities that have stopped their business are Hariom Holdfin Private Ltd and Capitaltrust Microfinance Pvt Ltd

RBI cancels 4 NBFCs registration; 11 surrender permit

NBFCs whose licence has been cancelled are Nanma Chits and Financiers Ltd, Chidrupi Financial Services Ltd, Goldline Financial Services Ltd, and Kailash Auto Finance Ltd, RBI said in a release.

NBFCs may report stable margins in Q1 on lower cost of funds, high-yield lending: Experts

Net interest margins of NBFCs ranged from 3 to 15 percent at the end of FY23, according to data from Bloomberg and investor presentations.