Page 5 - Nbfcs

Govt to provide collateral-free loans to start-ups under CGSS framework

The credit guarantee cover under the scheme would be both transaction-based (for single eligible borrowers) and umbrella-based (for a group of eligible borrowers)

LIC, Centre to sell 60.7% stake in IDBI Bank; DIPAM invites EoIs

DIPAM invites EoIs; last date to submit bids is Dec 16

RBI action against M&M Fin won't impact us: U Gro Capital's Sachindra Nath

'Our view is that the transmission of interest rates is not as high as the need for credit demand for working capital and term loans. So we don't see that as a challenge'

Bajaj Finance raises fixed deposit interest rate by up to 30 bps

Revised rates will be applicable from October 07, 2022.

Loan provisioning in banks: RBI for expected loss-based approach

With low NPAs and high provisions, time ripe for global standards: Bankers

Tata Sons, Bajaj Finance among 16 NFBCs put in RBI's upper layer list

HDFC, although qualified to be in the upper layer, has been kept out of the list as it is merging with HDFC Bank

Action against M&M Financial Services won't affect other NBFCs: RBI

Experts had pointed out that in light of these directions against one entity, recovery activities of NBFC sector could get impacted as a majority of NBFCs rely on outsourced agents for loan recovery

RBI to publish paper on expected loss-based approach for loan provisioning

Banks now make loan loss provisions on incurred loss model, wherein provisions are made after defaults

New funding mechanism takes wing for HNIs bidding Rs 2-10 lakh in an IPO

Under the new mechanism, non-banking finance companies (NBFCs) are providing up to Rs 8 lakh on a margin amount of Rs 2 lakh for a flat fee of Rs 2,000, said industry sources.

Bonding with bonds: Creating a deeper, wider market

India needs a vibrant bond market to fuel its growth ambitions but financial repression is keeping investors and issuers away

India Ratings upgrades non-bank lenders' outlook to neutral from improving

Domestic rating agency India Ratings on Tuesday upgraded its outlook on the non-bank lenders to "neutral" from "improving" on better collection efficiencies and asset growth in the sector. It, however, said that liability management is key for managing margins and loan growth for non-bank finance companies (NBFCs) and housing finance companies (HFCs). The agency said that with the onset of normalcy in lending, the on-balance sheet liquidity would also normalise, negating the impact of the rising cost of funds, thereby protecting margins to a certain extent. In the mid-year outlook on the sector, it said that a lower credit cost for 2HFY23 would aid profitability during the fiscal. Higher inflationary pressure on borrowers and interest rates may deter demand normalisation in the near term but the festive season demand could support the baseline credit offtake, it said. On the securitisation front, a major source of balance sheet management for lenders, the agency said it has witnes

NBFCs' recovery to be hit after RBI action against M&M Financial Services

Moreover, as lenders will not deploy their own staff for such activity, their operation costs may go up, said experts

Piramal Enterprises slips 9% to hit 52-week low; stock slumps 11% in 2 days

In the past two days, the stock slipped 11 per cent after the RBI directed M&M Financial Services to immediately cease any recovery or repossession activities via an outsource till further orders.

What borrowers should know about their rights against loan recovery agents

People who fail to repay their loans are not criminals and they can't be harassed

Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

Delisting of lending apps will be an ongoing process on Google Play Store

Verification involves manual interventions that can be quite complex

RBI mulls allowing P2P firms to diversify risks by entering secured lending

There has been exponential growth in P2P lending in recent years

Education loan redesign may overcome banks' reluctance to disburse more

Of the Rs 35 trillion of retaill loans deployed by banks, just Rs 84,375 crore or 2.4 per cent went towards education loans

The new world of digital lending

The business model of the digital lenders has to change as they have lost their freedom to directly deal with the customers

Loan waiver not a benefit, banks exempt from 10% TDS on OTS: CBDT clarifies

The Central Board of Direct Tax has clarified in a circular that the banks are not required to deduct 10% TDS on one-time settlement (OTS) or loan waivers.