Page 5 - Non-banking Finance Companies
YES Bank FPO: Don't judge it on the basis of price discount alone
NPA-adjusted valuations are not attractive; asset quality is a concern
 "YES Bank FPO: Don't judge it on the basis of price discount alone")
Liquidity and asset quality risks for Indian NBFI to continue, says Fitch
Risks due to impact of coronavirus pandemic on borrowers' repayment capabilities and the effects of the moratorium on collections, says ratings agency
 "Liquidity and asset quality risks for Indian NBFI to continue, says Fitch")
SBI Cap to float special purpose vehicle for NBFC debt purchase, says RBI
The government, on May 21, had said it will support creating a SPV that will buy such papers from NBFCs
 "SBI Cap to float special purpose vehicle for NBFC debt purchase, says RBI")
Bond market warms up to NBFCs, but India's top-rated companies benefit
The liquidity situation for non-banking financial companies (NBFCs), which had been facing a crunch on this front for some time now, is improving.
 "Bond market warms up to NBFCs, but India's top-rated companies benefit")
Mortgage norms: Tightened or relaxed?
From 50 per cent, a home finance firm's exposure to retail loans will go down to 37.5 per cent. Instead of a floor for retail loans, should the RBI look for a ceiling for wholesale loans?
After IL&FS crisis, Covid-19 makes NBFCs struggle despite RBI actions
While bank credit to NBFCs has seen a rise of 30 per cent year on year, credit has mostly flown into larger NBFCs with good parentage and ones with better ALM positions.
 "After IL&FS crisis, Covid-19 makes NBFCs struggle despite RBI actions")
Bank of Mauritius approaches RBI to clear the air on NBFC impasse
Bank of Mauritius has written to its Indian counterpart, explaining the mechanism by which investments are greenlighted via the country, and highlighted importance of Mauritius as an investment hub
 "Bank of Mauritius approaches RBI to clear the air on NBFC impasse")
Corona warriors for markets: Ambani, Adani stocks rise most since lockdown
The Bajaj group is the only one on the list of 12 conglomerates to be down - 1 per cent - since the lockdown came into effect, thanks to the hammering of stocks of non-banking financial companies.
 "Corona warriors for markets: Ambani, Adani stocks rise most since lockdown")
High risk aversion of most lenders is astounding, says Bajaj Finserv CMD
Instead of extending the moratorium by another three months, it would have been better to allow lenders to offer a one-time restructuring only to those who need it, says Sanjiv Bajaj
 "High risk aversion of most lenders is astounding, says Bajaj Finserv CMD")
Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace
Enquiries for fresh loans see uptick
 "Lockdown 4.0: Normalcy returning for shadow lenders, albeit at a slow pace")
Firms red-flag pitfalls of IBC suspension; law's future unsure, say experts
With the Insolvency and Bankruptcy Code, which was the instrument lenders had to make their borrowers fall in line, suspended for a year, many say this makes uncertain the future of a landmark law
 "Firms red-flag pitfalls of IBC suspension; law's future unsure, say experts")
Resume operations, says FM Sitharaman; India Inc cites hurdles in way
Industry wants cash in the hands of the poor, more policy reform in sectors such as tourism, automotives and aviation
 "Resume operations, says FM Sitharaman; India Inc cites hurdles in way")
Govt to use RBI money to support struggling NBFCs for just three months
NBFCs cry foul as they were expecting a two-three year support
 "Govt to use RBI money to support struggling NBFCs for just three months")
Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear
While the issue of providing liquidity to existing borrowers who are sapped of revenues has been addressed, banks will have to undertake due diligence on the solvency of units, said bankers.
 "Stimulus 2.0: Banks will monitor solvency, guarantees cool credit risk fear")
Sitharaman gives liquidity boost of Rs 75,000 cr to shadow banks, MFIs
Sitharaman announced a special liquidity scheme of Rs 30,000 crore for NBFCs, housing finance companies (HFCs) and MFIs, which are finding it difficult to raise money from the debt markets.
 "Sitharaman gives liquidity boost of Rs 75,000 cr to shadow banks, MFIs")
Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%
According to data from Bloomberg, banks have seen among the sharpest cuts in target prices -- between 16 and 60 per cent.
 "Blue chips see cuts in target prices; half of Nifty sees cuts of over 15%")
Private equity players see new business opportunities in post-Covid world
Currently, the PE exposure in credit is limited and constitutes less than a 2 per cent share of the overall credit offered to industry.
 "Private equity players see new business opportunities in post-Covid world")
RBI guv Das chastises banks not doing enough on lending, NBFC liquidity
Relaxation likely on branch audit as Guv meets bankers
 "RBI guv Das chastises banks not doing enough on lending, NBFC liquidity")
Discretionary loans, cross-selling likely to reduce after moratorium
Larger challenge is to communicate to borrowers the difference between moratorium and waiver, say lenders
 "Discretionary loans, cross-selling likely to reduce after moratorium")
NBFCs ask FM to offer credit guarantees to banks on loans extended by them
Industry has also pitched for SPV with initial funding from govt, to help refinance small and mid-sized NBFCs
 "NBFCs ask FM to offer credit guarantees to banks on loans extended by them")
