RBI proposes new liquidity norms for NBFCs. How it may impact you
5 years, 7 months ago

RBI proposes new liquidity norms for NBFCs. How it may impact you

Live Mint  

The Reserve Bank of India has issued draft guidelines on liquidity management for the non banking finance companies and proposed a liquidity coverage ratio for large NBFCs covering all deposit-taking NBFCs and non-deposit taking NBFCs with an asset size of ₹5,000 crore and above. Here is a look at what it means and how it will impact you: THE NEW RULES The key takeaway from the draft guidelines are that a bank-like liquidity coverage ratio for NBFCs to be put in place, granular management of asset liability mismatch and board-led liquidity policies or monitoring. “The guidelines require NBFCs to hold adequate level of high quality liquid assets. “We believe these guidelines are a positive for overall liquidity management of NBFCs, which will make the sector stronger,” said JM Financial in a note.

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History of this topic

CRR cut may boost bank margins, but tight liquidity challenges persist: Report
1 month ago

CRR cut may boost bank margins, but tight liquidity challenges persist: Report

Live Mint  

As widely anticipated, the Reserve Bank of India in its December Monetary Policy Committee meeting announced a 50-basis-point cut in the Cash Reserve Ratio to enhance liquidity in the banking system. While the CRR cut may not immediately influence deposit and lending rates, it is anticipated to boost bank margins, according to SBI Research. SBI pointed out that the expected …

Bank lending to NBFCs jump 26% to Rs 15.6 trillion
5 months, 4 weeks ago

Bank lending to NBFCs jump 26% to Rs 15.6 trillion

New Indian Express  

MUMBAI: Despite the Reserve Bank of India massively hiking the risk capital weighting on banks’ exposure to non-banks last November, the same has been rising unabated clipping at 26 per cent in May 2024, to go past Rs 15.6 trillion. In May 2024, mutual funds debt exposure to NBFCs rose to 13.3 per cent of banks advances to NBFCs, which …

RBI Deputy Governor Criticizes NBFC Demands, Warns P2P Lenders
11 months ago

RBI Deputy Governor Criticizes NBFC Demands, Warns P2P Lenders

Deccan Chronicle  

The Reserve Bank of India deputy governor M Rajeshwar Rao on Friday criticised the frequent demands from Non-Banking Finance Companies to convert into a bank or their demands to be allowed to accept public deposits.Speaking at the CII NBFC Summit, Rao clarified that the regulations for even entities in the top-most tier of NBFCs are not at par with universal …

RBI deputy governor urges banks to be prudent on lending to NBFCs
1 year ago

RBI deputy governor urges banks to be prudent on lending to NBFCs

Live Mint  

Mumbai: Banks need to reconsider whether they want to be part of lending consortiums to non-bank financiers that have scores of other lenders – up to 40 at times – to improve their monitoring of borrowers' use of sanctioned loans, RBI deputy governor Swaminathan J said. The deputy RBI governor was responding to a question from SBI managing director Ashwini …

Here's why NBFCs will have to look beyond banks for funds
1 year ago

Here's why NBFCs will have to look beyond banks for funds

Live Mint  

Mumbai: Non-bank lenders that borrow heavily from commercial banks to lend further may need to diversify their funding sources in the year ahead, given the rising competition for bank credit, and higher risk weights on loans to these lenders, experts said. “The idea is to improve funding access to productive sectors, but the regulations can lead to customers paying more …

NBFCs relying more on bank loans: RBI
1 year, 3 months ago

NBFCs relying more on bank loans: RBI

Live Mint  

Mumbai: Domestic non-banking financial companies, especially those in the upper-layer category, are increasingly relying on bank borrowings as their primary source of funding, according to an analysis in Reserve Bank of India ’s September bulletin. “During the assessment period, NBFCs’ reliance on banks increased steadily due to low interest environment and lag monetary policy transmission," the article said. Direct bank …

RBI names 16 leading NBFCs in its upper layer list
2 years, 3 months ago

RBI names 16 leading NBFCs in its upper layer list

Live Mint  

The Reserve Bank of India on Friday released a list of 16 upper layer non-banking finance companies that must adhere to enhanced regulation. The 16 companies in the NBFC-UL list are: LIC Housing Finance, Bajaj Finance, Mahindra & Mahindra Financial Services, Shriram Transport, Tata Sons, L&T Finance, Indiabulls Housing Finance, Piramal Capital & Housing Finance, Cholamandalam Investment and Finance Co., …

Monetary Policy will be watched for liquidity guidance
2 years, 3 months ago

Monetary Policy will be watched for liquidity guidance

Live Mint  

Of late, Indian fixed income markets are witnessing heightened nervousness due to many factors. The banking system’s liquidity slipped into deficit after 40 months on 21 September, led by advance tax outflows for the second quarter and payments for government bonds. Out of the total gross borrowings of ₹14.31 trillion, the government raised ₹7.72 trillion smoothly until 16 September, thanks …

India’s risk-based internal audit requirement for NBFCs is credit positive: Moody’s
3 years, 11 months ago

India’s risk-based internal audit requirement for NBFCs is credit positive: Moody’s

Live Mint  

The Reserve Bank of India guidelines for non-banking finance companies to implement a risk-based internal audit framework in line with banks is credit positive, Moody's Investors Service said on Monday. "The requirement is credit positive because it adds another layer of risk monitoring and improves the companies' resilience to unexpected shocks," said Moody's in its latest credit outlook. Moody's said …

NBFCs have an edge in banking licence race
4 years, 1 month ago

NBFCs have an edge in banking licence race

Live Mint  

Large non-bank lenders stand to gain the most from the Reserve Bank of India panel’s proposal to allow large companies and shadow lenders into banking services, experts said. More importantly, it would allow RBI to increase regulatory oversight over some of the large shadow lenders, particularly after the collapse of Infrastructure Leasing & Financial Services Ltd and Dewan Housing Finance …

RBI announces Co-lending scheme for banks, NBFCs for priority sector
4 years, 2 months ago

RBI announces Co-lending scheme for banks, NBFCs for priority sector

Deccan Chronicle  

Mumbai: In a bid to improve the flow of credit to the unserved sector of the economy and to make funds affordable for them, the Reserve Bank of India on Wednesday revised the guidelines for banks and NBFCs including housing finance companies to jointly lend to the priority sector. The primary focus of the revised scheme, rechristened as “Co-Lending Model”, …

RBI Announces Steps to Ease Pressure on Liquidity
4 years, 4 months ago

RBI Announces Steps to Ease Pressure on Liquidity

News 18  

The Reserve Bank on Monday announced a host of steps, including term repo operations totalling Rs 1 lakh crore in mid-September to ease pressure on the liquidity and maintain congenial financial conditions with a view to ensuring sustainable recovery of economic growth. "The RBI stands ready to conduct market operations as required through a variety of instruments so as to …

Amid churn, non-banks explore consolidation option
4 years, 5 months ago

Amid churn, non-banks explore consolidation option

Live Mint  

India’s non-bank lenders, staring at ₹1.51 trillion debt repayments due in the next six months, are rushing to raise fresh equity and pursuing mergers with bigger peers to avert defaults, as the coronavirus pandemic darkens the outlook for the sector that has struggled since the collapse of Infrastructure Leasing and Financial Services Ltd nearly two years ago. “In many instances, …

NBFCs will continue to face liquidity, asset quality risks: Fitch
4 years, 6 months ago

NBFCs will continue to face liquidity, asset quality risks: Fitch

Live Mint  

MUMBAI: India's non-bank financial companies will continue to face elevated liquidity and asset quality risks, even as economic activity picks up with the easing of the nationwide lockdown, according to global rating agency Fitch Ratings. Non-banks, facing a liquidity shortage ever since Infrastructure Leasing and Financial Services Ltd defaulted on its payment obligations, have been under renewed strain as banks …

RBI lays down guidelines for NBFCs, HFCs under special liquidity scheme
4 years, 6 months ago

RBI lays down guidelines for NBFCs, HFCs under special liquidity scheme

Live Mint  

The Reserve Bank of India on Wednesday laid down the eligibility criteria for non-bank financiers and mortgage lenders to utilize a special liquidity scheme that was approved by the Union cabinet in May. The funds thus received from the sale of securities would be used by the SPV to buy short-term investment-grade papers from eligible NBFCs and HFCs, providing them …

The problem with the liquidity push
4 years, 7 months ago

The problem with the liquidity push

The Hindu  

The present government’s much-hyped, post-COVID-19 relief and recovery package has disappointed many. In its effort to tote up a 10% of GDP relief-cum-stimulus figure, the government has relied heavily on measures aimed at pushing credit to banks, non-banking financial companies and businesses big and small, which are expected to use borrowed funds to lend to others, make payments falling due, …

Economic package: Successful implementation of support measures for NBFI will be key, says Fitch Ratings
4 years, 7 months ago

Economic package: Successful implementation of support measures for NBFI will be key, says Fitch Ratings

Firstpost  

Fitch Ratings on Wednesday said support measures announced by the government for non-banking finance companies seek to ease borrower strain and boost funding conditions for NBFIs, but successful implementation will be the key New Delhi: Fitch Ratings on Wednesday said support measures announced by the government for non-banking finance companies seek to ease borrower strain and boost funding conditions for …

Coronavirus impact: NBFCs urge RBI to allow draw-down from reserves for provisioning
4 years, 7 months ago

Coronavirus impact: NBFCs urge RBI to allow draw-down from reserves for provisioning

Firstpost  

Non-banking financial companies on Friday requested the Reserve Bank of India to allow them to draw-down from their reserves for making additional provision for expected losses due to COVID-19 pandemic Mumbai: Non-banking financial companies on Friday requested the Reserve Bank of India to allow them to draw-down from their reserves for making additional provision for expected losses due to COVID-19 …

Fresh crisis looms for NBFCs after fund shuts
4 years, 7 months ago

Fresh crisis looms for NBFCs after fund shuts

Live Mint  

India’s shadow lenders are facing fresh turmoil after asset manager Franklin Templeton shut funds late last month, prompting other large investors to dump the financiers’ debt. Three other gauges of the sector’s health compiled by Bloomberg showed no improvement last month, with a measure of shares of 20 financial firms and other companies staying depressed. Government measures To help cash-starved …

Nirmala Sitharaman on Rs 20 lakh crore package: MSMEs to be given Rs 3 lakh crore collateral-free automatic loans, TDS, TCS rates slashed by 25%
4 years, 7 months ago

Nirmala Sitharaman on Rs 20 lakh crore package: MSMEs to be given Rs 3 lakh crore collateral-free automatic loans, TDS, TCS rates slashed by 25%

Firstpost  

On Wednesday, Sitharaman started by saying that she and her team will hold daily press conferences to inform people about a number of responses the Centre has prepared with the aim of bringing the economy back on track. Finance Minister Nirmala Sitharaman on Wednesday held a press conference detailing the Rs 20 lakh crore economic package aimed at creating an …

Coronavirus Outbreak: RBI governor Shaktikanta Das meets NBFCs, MFs sector; reviews liquidity situation
4 years, 8 months ago

Coronavirus Outbreak: RBI governor Shaktikanta Das meets NBFCs, MFs sector; reviews liquidity situation

Firstpost  

Operations of NBFCs have commenced from Monday as the government eased restrictions for the lockdown. Mumbai: Reserve Bank governor Shaktikanta Das on Monday reviewed liquidity position and ways to promote lending to the MSME sector during a meeting with representatives of non-banking financial companies and mutual funds amid the lockdown induced by the COVID-19 pandemic. Some of the issues discussed …

RBI's liquidity support for MFs may struggle to be effective; Fitch says success will depend on banks' appetite to take up risks
4 years, 8 months ago

RBI's liquidity support for MFs may struggle to be effective; Fitch says success will depend on banks' appetite to take up risks

Firstpost  

The Reserve Bank of India’s liquidity support for mutual funds may struggle to be effective, as its success will hang on banks’ appetite to take up the risks involved, amid low capital headroom and a likely increase in fresh non-performing loans, according to Fitch New Delhi: The Reserve Bank of India’s liquidity support measures for mutual funds may struggle to …

RBI's liquidity support for MFs may struggle to be effective: Fitch
4 years, 8 months ago

RBI's liquidity support for MFs may struggle to be effective: Fitch

India TV News  

The Reserve Bank of India''s liquidity support for mutual funds may struggle to be effective, as its success will hang on banks'' appetite to take up the risks involved, amid low capital headroom and a likely increase in fresh non-performing loans, according to Fitch. The RBI''s Rs 50,000 crore Special Liquidity Facility for Mutual Funds will provide 90-day repo funding …

RBI opens ₹50,000 liquidity tap for Mutual Funds
4 years, 8 months ago

RBI opens ₹50,000 liquidity tap for Mutual Funds

The Hindu  

The Reserve Bank of India has announced a special window of ₹50,000 crore for mutual funds in view of the redemption pressure that the fund houses are facing. While announcing the window, the RBI said the liquidity stress is limited to high risk debt funds and the larger industry remains liquid. Funds availed under this facility will be used by …

RBI MF liquidity window to improve investor confidence, calm down corporate debt market: Experts
4 years, 8 months ago

RBI MF liquidity window to improve investor confidence, calm down corporate debt market: Experts

Firstpost  

Experts on Monday termed the RBI’s move to open a special liquidity facility of Rs 50,000 crore for the mutual fund sector as “brilliant”, saying it will improve investor confidence and reduce stress in the corporate debt market New Delhi: Experts on Monday termed the RBI’s move to open a special liquidity facility of Rs 50,000 crore for the mutual …

Coronavirus Outbreak: SIDBI to provide 90-day term loans to banks, NBFCs, MFIs for onward lending to MSMEs
4 years, 8 months ago

Coronavirus Outbreak: SIDBI to provide 90-day term loans to banks, NBFCs, MFIs for onward lending to MSMEs

Firstpost  

SIDBI will offer liquidity to banks, NBFCs and MFIs as term loans for a tenor of 90 days and for a maximum period of one year, Mumbai: Small Industries Development Bank of India on Thursday said it will provide special liquidity to banks, non-banking financial companies and microfinance institutions for on-lending to micro, small and medium enterprises that are affected …

RBI measures for NBFCs may not boost credit flow to the broader economy: Moody's
4 years, 8 months ago

RBI measures for NBFCs may not boost credit flow to the broader economy: Moody's

India TV News  

The Reserve Bank of India's measures to help facilitate funds to the NBFC sector is unlikely to boost the credit flow to the broader economy as NBFCs would shore up their own liquidity rather than on-lending to customers, Moody's Investors Service said on Sunday. Moody's Investors Service Vice-President Alka Anbarasu said the measures will soften the near-term credit negative impact …

RBI ensures liquidity support to NBFCs
4 years, 8 months ago

RBI ensures liquidity support to NBFCs

The Hindu  

The Reserve Bank of India has announced a host of measures to provide liquidity support to the non-banking finance companies, apart from giving them certain benefits for loans extended to the commercial real estate sector. To begin with, the banking regulator said banks to have to invest the funds availed under targeted long term repo operations, in investment grade bonds, …

Moratorium on repayment puts NBFCs in a spot
4 years, 8 months ago

Moratorium on repayment puts NBFCs in a spot

The Hindu  

Non-banking financial companies may face a tough time following the Reserve Bank of India’s recent directive on providing a moratorium on repayment. “With collections being minimal and the moratorium only for their borrowers, raising fresh funds is critical, especially because NBFCs, unlike banks, do not have access to systemic sources of liquidity and depend significantly on wholesale funding,” it said. …

Credit guarantee on NBFC, HFC debt
4 years, 11 months ago

Credit guarantee on NBFC, HFC debt

Deccan Chronicle  

Mumbai: The government has proposed to provide credit guarantee for the liquidity-struck shadow banking sector. To address the liquidity constraints of NBFCs and housing finance companies, the government proposed to set up a partial credit guarantee scheme for the sector after the Union Budget 2019-20. Karthik Srinivasan, senior vice president and group head, financial sector ratings, Icra said, “Inclusion of …

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand
4 years, 11 months ago

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand

Live Mint  

Non-banking finance companies play an important role in providing credit access to businesses and individuals across the spectrum. The increase in the ₹2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act, will encourage demand for housing, especially in the affordable and mid-segment categories. Allow strong NBFCs/ HFCs to access public deposits: Large …

Putting out spreading fires: Raghuram Rajan's cure for real estate, NBFC sectors
5 years, 1 month ago

Putting out spreading fires: Raghuram Rajan's cure for real estate, NBFC sectors

India Today  

Noted economist Raghuram Rajan has laid out a detailed plan for the recovery of the stressed real estate sector and non-banking financial companies, which are its key lenders. Rajan, a former Reserve Bank of India governor, said both real estate sector and NBFCs are in deep trouble and pouring in fresh capital may not help in any improvement. "Instead of …

Is it right solution to bring NBFCs under IBC, Ashok Leyland posts weak Q2 results; read this and more on Moneycontrol Pro
5 years, 1 month ago

Is it right solution to bring NBFCs under IBC, Ashok Leyland posts weak Q2 results; read this and more on Moneycontrol Pro

Firstpost  

Despite adequate liquidity in the banking system, many NBFCs are finding it difficult to raise money because no one trusts their balance sheets. Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. As resolution proves elusive for defaulting NBFCs such as Dewan Housing Finance Ltd the government is considering allowing some financial …

NBFCs not enthused with revised ALM norms: Kotak
5 years, 2 months ago

NBFCs not enthused with revised ALM norms: Kotak

Live Mint  

The RBI norms on liquidity and asset quality of non-banking financial companies will offer some comfort and cushion to the market, but concern over the wholesale segment's asset quality remains a challenge for debt market players, broking firm Kotak said on Tuesday. The Reserve Bank had on Monday issued final guidelines on Asset Liability Management and Liquidity Coverage Ratio framework …

RBI asks NBFCs to adopt better tools to detect liquidity strains early
5 years, 2 months ago

RBI asks NBFCs to adopt better tools to detect liquidity strains early

Live Mint  

Reserve Bank on Monday asked the already fund-starved NBFCs to adopt better risk monitoring tools that capture the strains early on and also to maintain a liquidity buffer as per the mandated liquidity coverage ratio. It also asked NBFCs to segregate into granular buckets the 1-30-day time bucket in the statement of structural liquidity to 1-7, 8-14, and 15-30 days …

Banks to face capital shortfall of Rs 3.5 lakh cr in event of systemic crisis in NBFC sector: Fitch Ratings
5 years, 2 months ago

Banks to face capital shortfall of Rs 3.5 lakh cr in event of systemic crisis in NBFC sector: Fitch Ratings

Firstpost  

New Delhi: Banks would face a capital shortfall of about $50 billion in the event of a systemic crisis in the non-banking financial company sector, according to a study by global rating agency Fitch. “The credit profiles of the state-owned banks would come under significant pressure, and the weakest – including those with Viability Ratings in the ‘b’ range – …

Finance Minister Nirmala Sitharaman to meet CEOs of PSU banks today; to review fund flow to NBFC, MSME sectors
5 years, 2 months ago

Finance Minister Nirmala Sitharaman to meet CEOs of PSU banks today; to review fund flow to NBFC, MSME sectors

Firstpost  

NBFCs, including housing finance companies, came under stress following a series of defaults by the group companies of IL&FS in September last year New Delhi: Finance Minister Nirmala Sitharaman will hold a review meeting with CEOs of public sector banks on 14 October to discuss various issues, including progress on credit offtake, as part of efforts to prop up the …

RBI not looking at liquidity facility for NBFCs: Dy Guv Vishwanathan
5 years, 3 months ago

RBI not looking at liquidity facility for NBFCs: Dy Guv Vishwanathan

Live Mint  

Mumbai: Reserve Bank of India has ruled out any special liquidity facility for Non Banking Financial Institutions saying there is enough in the system to meet their needs for borrowings and it is for the lenders to take a call on lending to the NBFCs. "Reserve Bank's position is that there is adequate liquidity in the system and it is …

Liquidity taps opened for banks and NBFCs
5 years, 4 months ago

Liquidity taps opened for banks and NBFCs

Live Mint  

The Centre will front-load its ₹70,000-crore capital infusion into public sector banks to nudge additional lending of ₹5 trillion, said finance minister Nirmala Sitharaman. Banks, said Sitharaman, have also decided to link their lending rates with the Reserve Bank of India’s repo rate, leading to lower EMIs for housing, auto and other retail loans. As part of the ₹1 trillion …

RBI governor Shaktikanta Das rules out asset quality review of NBFCs for now
5 years, 4 months ago

RBI governor Shaktikanta Das rules out asset quality review of NBFCs for now

Firstpost  

Mumbai: Even as he reiterated the regulatory resolve to not let any large NBFC fail, Reserve Bank governor Shaktikanta Das Monday ruled out ordering an asset quality review of the systematically important shadow banks for now. Addressing the press on the sidelines of the national banking conference being organised by the industry lobby Ficci, Das ruled out ordering an asset …

Central bank opens liquidity tap to help stressed shadow banks
5 years, 5 months ago

Central bank opens liquidity tap to help stressed shadow banks

Live Mint  

The Reserve Bank of India on Wednesday announced two key measures to help stressed non-banking financial companies raise funds from banks. “Under the revised guidelines on large exposure framework that came into effect from 1 April 2019, a bank’s exposure to a single NBFC is restricted to 15% of its Tier I capital, while for entities in the other sectors, …

Opinion | Need a strategy that goes beyond interest rates
5 years, 5 months ago

Opinion | Need a strategy that goes beyond interest rates

Live Mint  

The factors that are slowing growth are piling up. Simply put, the liquidity problems in India’s non-banking financial companies are not going away any time soon, and gross domestic product growth is slowing due to a long list of domestic and international challenges. “Credit-less” recoveries are generally considered rare around the world given that it’s hard to fund growth without …

NBFC crisis: Liquidity steps for non-banking finance companies too little, too short-term, says Fitch report
5 years, 5 months ago

NBFC crisis: Liquidity steps for non-banking finance companies too little, too short-term, says Fitch report

Firstpost  

Mumbai: The government measures to provide partial credit guarantee to public sector bank on their asset purchases from NBFCs can ease funding pressure only for the short-term, says a report. In the budget, the government had said for purchase of high-rated pooled assets of financially-sound NBFCs, amounting to Rs 1 trillion during the current financial year, it will provide a …

Guidelines for PSU banks to pick pooled assets of NBFCs likely this week
5 years, 5 months ago

Guidelines for PSU banks to pick pooled assets of NBFCs likely this week

Live Mint  

New Delhi: In a bid to deal with stress in NBFC sector, guidelines will be issued soon for state-owned banks to take over pooled assets of non-banking financial companies, a finance ministry official said. To address the stress in the sector, Finance minister Nirmala Sitharaman in the Budget proposed that public sector banks would purchase high-rated pooled assets of financially …

Opinion | The budget’s NBFC lifeline needs rework
5 years, 6 months ago

Opinion | The budget’s NBFC lifeline needs rework

Live Mint  

After months of dithering and allowing the financial sector, especially non-banking financial companies, to thrash about in deep waters, the government has finally thrown a lifeline to the industry. The logjam acquired crisis proportions when many NBFCs were forced to sell profitable assets to generate cash to repay maturing debts. Initial appeals to both the Reserve Bank of India and …

Shares of NBFC advance as finance minister allows more power to RBI supervision
5 years, 6 months ago

Shares of NBFC advance as finance minister allows more power to RBI supervision

Live Mint  

Mumbai: Non banking finance companies on Friday surged after finance minister Nirmala Sitharaman said in the Union budget that the government will give more powers to Reserve Bank of India to supervise NBFCs. According to Bloomberg report, the government is said to peg fiscal year 2020 budget deficit target at 3.3% of gross domestic product. Finance minister Nirmala Sitharaman is …

Budget 2019: Here's How Crisis-Hit NBFCs Want FM Nirmala Sitharaman To Address Liquidity Crunch
5 years, 6 months ago

Budget 2019: Here's How Crisis-Hit NBFCs Want FM Nirmala Sitharaman To Address Liquidity Crunch

ABP News  

Budget 2019: Newly appointed Finance Minister Nirmala Sitharaman is all set to table her maiden Union Budget on July 5 and one of the major issue she needs to address is the ongoing crisis in the Non-Banking Financial Company sector. According to news agency PTI, FIDC said that NBFCs should be allowed to avail of refinance facility under the Pradhan …

NBFC crisis not a solvency issue, says industry body
5 years, 6 months ago

NBFC crisis not a solvency issue, says industry body

Live Mint  

Finance Industry Development Council, the industry body for non-banking financial companies, said the current liquidity crisis is not a solvency issue, but is more of a growth-related problem. At a press conference held on Tuesday, FIDC said that while funds were available at a higher cost, there was a need for a special liquidity window through banking channels, which will …

To solve the liquidity crisis, RBI should make banks lend more to NBFCs
5 years, 6 months ago

To solve the liquidity crisis, RBI should make banks lend more to NBFCs

Hindustan Times  

In the immediate liquidity crisis, good Non-Bank Financial Companies should be able to raise debt capital, but this is not always happening. If the real estate company is itself under financial stress, and does not have the money to complete its project, the assets on the balance sheet of the NBFC start looking bad. Suppose the real estate company needed …

Making sense of the NBFC puzzle box
5 years, 6 months ago

Making sense of the NBFC puzzle box

Live Mint  

Mumbai: Non-banking financial companies have been in the news since September last year for all the wrong reasons. An RBI research report showed that 99.7% of shadow banking in India makes long-term loans against short-term funding, primarily carried out by NBFCs and housing finance companies. Amit Bapna, RCAP’s group chief financial officer, told Mint that following the IL&FS crisis, funding …

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