Analysts say the markets have been caught in a contagion of a sell-off in banking and NBFC segments
Analysts are warning that India's shadow banking sector could face a cash crunch after key lender IL&FS missed debt payments
Asset-liability management, ability to quickly pass of high cost of funds and recovery capacity in worst case scenario are key issues
With PSU Banks reeling under crisis, the NBFCs had a field day in the last 3-4 years
The general nervousness because of the IL&FS default will prevail in the system for now, says Naresh Takkar, Managing Director and group CEO of Icra
According to the analysts, the IL&FS crisis was the main reason behind the selloff. That apart, a rise in bond yields too weighed on the sentiment.
The NBFC will be in place by end of the year
Experts see increased hiring in tier-II cities for roles in sales, collection underwriting and risk
While growth opportunity is high, some experts are also cautious about a possible increase in the cost of funds for NBFCs
While banks are struggling to come out of the bad loan mess, NBFCs are in a sweet spot of rising consumer demand
Bajaj Finance Limited increased their urban outlet network by 40.3% to 529 stores at the end of December 2017
As on June 30, 2017, the total managed retail credit of NBFCs stood at Rs. 6.4 trn
Capital First, Chola Investment and L&T Finance stand out for their unique business model and reason
RBI reduced amount to Rs 25,000 from earlier Rs 1 lakh in line with provisions of the Income Tax Act
Muthoot Finance, Manappuram Finance, Srei Infra, DHFL, Bajaj Finance and M&M Financial were up 4% to 7%.
PTC India Financial, Satin Creditcare, Shriram Transport Fin, Bharat Financial, Muthoot Finance and M&M Financial were up 3%-6% on the BSE.
Forget stalling bank credit and NPAs, look at booming consumer credit
Investors have fallen for stocks that till yesterday were considered just an arbitrage play over banks
They're making inroads into microfinance, used car finance and rural housing; retail loans of top 12 NBFC are barely 5% smaller in size than those of top-5 private banks
Bajaj Finserv and M&M Financial Services from the BSE500 index hit record highs on the BSE.