NBFCs – The News Desk

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

28Dec

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Business

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

RBI report said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respectively, in September 2023. The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-ye...

NBFCs likely to see assets growth moderating to 16-18% in FY24: Crisil

22Nov

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Business

NBFCs likely to see assets growth moderating to 16-18% in FY24: Crisil

NEW DELHI: India's NBFC sector is expected to record a moderate growth of 16-18 per cent in the current fiscal because of relatively slower expansion on unsecured retail loans due to the recent regulatory measures issued by the RBI, Crisil Ratings said on Wednesday.Assets Under Management (AUM) of Non-Banking Financial Companies (NBFCs) are set to log a healthy 14-17 per cent growth next fiscal on the back of continued strong credit demand across retail loan segments, it said in a release."Growth may be moderately lower than 16-18 per cent expected in the current fiscal, as unsecured retail loans, the fastest growing segment in the NBFC AUM pie so far, are likely to see a relatively slower growth as NBFCs recalibrate their strategies due to the recent regulatory measures issued by the Res...

Wilful defaulters must be identified within 6 months

22Sep

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Business

Wilful defaulters must be identified within 6 months

The Reserve Bank of India (RBI) on Thursday said lenders would have to examine all aspects relating to wilful default on accounts with outstanding dues of Rs 25 lakh or more and identify wilful defaulters within six months of a loan becoming a non-performing asset (NPA). The regulator on Thursday released draft norms on wilful and large defaulters. It has allowed non-banking finance companies and cooperative banks to identify them. A wilful defaulter is a borrower or a guarantor who has defaulted without being constrained to do and the outstanding amount is Rs 25 lakh and above. A large defaulter is one whose amount in default is Rs 1 crore and above. For calculating the cut-off point of Rs 1 crore, the unapplied interest, if any, should be included. For an account th...

India Inc faces costlier borrowing as corporate-govt yield gap widens

12Sep

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Business

India Inc faces costlier borrowing as corporate-govt yield gap widens

Indian companies are staring at an increase in their cost of borrowing this festival season, with the spread between yields on corporate and government bonds beginning to widen. In what could be early signs that borrowing was getting costlier for companies, the yield spread between AAA-rated corporate and government bonds has widened by 2 basis points and 4 basis points, respectively, for 3-year tenure and 10-year tenures in September so far. The spread for the 5-year tenure has remained unchanged. By comparison, in August, the spread between the AAA-rated corporate bonds and the corresponding government securities had narrowed amid tighter liquidity concerns. The yield spread between AAA-rated 5-year corporate bonds and 5-year government bonds had narrowed by 7 basis...