NBFCs seek different capital adequacy norms

Non-banking financial companies (NBFC) have sought different capital adequacy norms for different categories of players against the present system of fixing a fixed ratio for all companies.

"We asked different regulations for different NBFCs. Those who are averse to risk, can have different CRAR (Capital to Risk Weighted Assets Ratio) while AFC (asset finance company) and IFC (infra finance company) can be put in a different category," Director General of Finance Industry Development Council, Mahesh Thakkar told reporters after the pre-policy consultation with RBI.

Earlier, the RBI panel headed by former deputy governor Usha Thorat had recommended that NBFCs should have tier-I capital adequacy ratio of 12% against 7.5% now. It had also prescribed that only NBFCs with asset book of Rs 50 crore and above should be registered with the regulator. "The Rs 50 crore limit should go and CRAR should be retained at 7.5%," Thakkar said.

Meanwhile, talking about performance of NBFCs, he said most of the companies grew 15-20% during last fiscal on the back of good performance in the last six months. "Though first six months were bad, in the last six months business picked up across NBFCs and the growth rate was positive," he said.