Stocks of non-banking lenders came under pressure on Tuesday as concerns on liquidity resurfaced
According to MFIs, one of the factors behind the rise in securitisation deals was State Bank of India's (SBI) decision to buy portfolio worth Rs 45,000 crore from NBFCs
Liquidity has improved, but 20 out of 24 NBFC stocks are staring at an over 5% reduction in 12-month target prices.
SBI led the rise, buying portfolios worth Rs 45,000 cr, say MFIs; 43 firms raised funds via securitisation in FY19 versus 24 in FY18; Of these, 14 were first-time entrants
NBFC-MFIs, which hold the largest share in micro-credit space, were able to shake off impact of tight liquidity in Q3
According to Sebi data, the share of funds deployed to CPs of NBFCs slipped to 8.2 per cent in January
Mahindra and Mahindra Finance Services, Bajaj Finserv, SREI Infrastructure Finance, Religare Enterprises and L&T Finance Holdings are trading higher in the range of 5-7% on BSE
Subhash Chandra Garg says govt doesn't even know whom to approach in order to address NBFC issues as there are no organisations representing the sector
As for NBFCs, the retail credit stood at Rs 8.3 trillion as on September 2018
Backed by an increase in fund-based income, the NBFCs saw an improvement in their profitability in FY18 and in the H1 of FY 19
Kolkata tops list with 617 cancellations, Delhi second with 203
Within the NBFC space, housing finance companies (HFCs) are likely to find few takers
NBFCs and banks need not be treated in the same manner
Tighter regulation is important, but so is the timing
We need to think about having far more balanced asset-liabilities management, says Rakesh Singh
For the microfinance industry too, the increase in lending rates has been roughly between 50-100 bps
Experts say the crunch was triggered by the IL&FS issue and not because realtors defaulted
The RBI has also augmented system-wide liquidity through various moves
Revised securitisation regulations may bring relief of Rs 1 trillion, but could impact ALM and asset quality
Credit to NBFCs rose 55 per cent in October, says RBI