Page 6 - Non-banking Finance Companies

Big NBFCs need direct liquidity line from RBI: Bajaj Finserv's Sanjiv Bajaj

In an interview with Surajeet Das Gupta, Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, charts out the challenges and way forward for the economy as well as NBFCs

IBA to discuss the issue of giving a moratorium to NBFCs on Saturday

A senior executive of a public sector bank said the IBA's management committee meeting would discuss the issue of giving a moratorium to finance firms.

RBI measures, global markets surge propel Sensex, Nifty to one month high

Most global markets surged as investor appetite for risk assets improved due to the progress of an experimental drug for treating covid-19 and on US's plan to reopen its economy.

NBFC association to RBI: One-time loan restructuring need of the hour

FIDC has asked the central bank to extend the facility to all customer loans

NBFCs have to repay debt worth Rs 1.75 trillion by June 2020: CRISIL

Many finance companies are already facing a liquidity challenge after the IL&FS debacle.

Cash-strapped DHFL not to make any payment to lenders, bondholders

The Corporate Insolvency Resolution Process (CIRP) was initiated against the debt-ridden company as per the provisions of the Insolvency and Bankruptcy Code, 2016 with effect from December 3, 2019

NBFC-MFIs seek clarity from RBI on 3-month moratorium on loans

RBI seeks data on drawdowns, bank loans, exposure to NCDs and CPs

Rating agency Brickwork downgrades PTC Financial Services to AA- from AA

The negative growth in the loan book of PFS, a unit of PTC India, is on account of funding challenges faced by NBFCs

Access to funding improves for NBFCs but not yet at pre-IL&FS level

Debt capital markets continue to shy away from the shadow banking sector

Indian firms raise $23 bn via dollar bonds; issuance sees five-fold jump

Softening of US treasury yields, weak domestic liquidity attract firms to yield-chasing offshore market

BS Banking Annual 2019: Tighter norms, coexistence with banks, NBFCs future

The single biggest learning is that percentages after a certain size are not relevant, both on the asset and the liability side, says IndiaBulls Housing MD Gagan Banga

Markets to lay down long-term base for returns, says Vaibhav Sanghavi

The focus would increase on FY21 earnings which can grow by about 15 per cent, according to Vaibhav Sanghavi

Industry remains sceptical about loans to NBFCs under partial guarantee

Scepticism over the quality and value of underlying assets and the scheme, excluding big-ticket loans (or wholesale loans), may remain the barriers in the PCG scheme's success

NBFCs, HFCs rated up to BBB+ come under partial credit guarantee scheme

This will allow public sector banks (PSBs) to buy pooled assets from financially sound entities

Banking funds have gained from global inflows amid US-China deal hopes

But beware that NBFCs with high exposure to real estate are not out of the woods yet

Liquidity pressures faced by NBFCs, HFCs, to continue: Fitch Ratings

Liquidity pressures faced by the non-banking financial sector following the IL&FS failure are likely to continue though funding costs have come off the peak, Fitch Ratings said on Friday. "We view wholesale and housing finance companies (HFCs) as more vulnerable -- given their higher leverage, weaker asset-and-liability maturity (ALM) profiles and higher concentration risks. Large retail finance companies with well-managed ALM profiles should continue to access bank and capital markets funding. Further, funding diversification in the offshore markets by larger issuers would benefit their funding profiles," it said in its outlook for emerging market finance and leasing companies. Indian finance and leasing companies are likely to grow at a slower pace in 2020 than in prior years, amid weaker economic growth and liquidity constraints, it said. Fitch said its 2020 sector outlook is underpinned by challenging operating environments, lower growth prospects, and rising funding pressure.

Govt considers special window for resolution of stressed NBFCs under IBC

The move also comes against the backdrop of financial sector players like Dewan Housing Finance Corporation Ltd facing troubles

After DHFL crisis, centre to issue new rules to bring NBFCs under IBC

DHFL is one of the largest HFCs that ran into trouble last year soon after the collapse of IL&FS

Liquidity coverage ratio may not adversely impact growth of NBFCs

Initially, NBFCs have to maintain a minimum of 50 per cent of high quality liquid assets as part of the LCR, which will progressively touch 100 per cent by December 2024

NBFC crisis: Indian banks could face a $50-billion capital shortfall: Fitch

The weakest, including those with Viability Ratings in the 'b' range, would face heightened solvency risks without capital injections from the government, the rating agency said