MFI portfolio declines, bad assets spike in Sept qtr: Report
20 hours, 46 minutes ago

MFI portfolio declines, bad assets spike in Sept qtr: Report

Live Mint  

Mumbai, Jan 8 Microlending outstandings in the system reduced 4.3 per cent to ₹4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed a sharper rise at 4.3 per cent as against 2.7 per cent in June, credit information company Crif High Mark said. Data from the credit information company said only non-banking financial companies grew their portfolio in the September quarter, registering a 0.7 per cent quarter-on-quarter growth, while all others, including banks and small finance banks, saw a decline. Delinquencies spiked across ticket sizes and lender types, particularly in the top 10 states, it said, adding that Bihar, Tamil Nadu, Uttar Pradesh, and Odisha accounted for nearly two-thirds of the incremental bad loans.

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NBFC loan growth to decline in FY26 to 18.5% YoY: Ind-Ra
Trending News
1 day, 14 hours ago

NBFC loan growth to decline in FY26 to 18.5% YoY: Ind-Ra

The Hindu  

India Ratings and Research which has maintained a neutral sector outlook and a Stable rating Outlook for non-bank finance companies for FY26 has projected that the loan growth of NBFCs would further decline in FY26 to 18.5% YoY. According to the rating agency the NBFCs after witnessing a phase of high reliance on the unsecured loan segment for achieving loan …

Three reasons why Equitas Small Finance Bank stock could rebound
1 week, 1 day ago

Three reasons why Equitas Small Finance Bank stock could rebound

Live Mint  

Stocks of companies that have anything to do with microfinance – including banks, small finance banks, and non-banking financial companies – have been hammered on the bourses over the past three quarters. View Full Image Source: Tijorifinance.com In the September Quarter, small finance banks reported a record percentage of microfinance institution loans that had remained unpaid for 30-180 days. View …

NPAs at 12-year low, red flags in some areas, says RBI report
1 week, 2 days ago

NPAs at 12-year low, red flags in some areas, says RBI report

Hindustan Times  

Indian banks’ bad loans fell to their lowest level in 12 years, although early warning indicators suggest potential stress in some sectors, the Reserve Bank of India’s financial stability report stated on Monday. NPAs at 12-year low, red flags in some areas, says RBI report The gross non-performing assets ratio of scheduled commercial banks declined to 2.6% in September 2024, …

Indian banks’ balance sheets stay robust, bad loans decline more, central bank report says
1 week, 6 days ago

Indian banks’ balance sheets stay robust, bad loans decline more, central bank report says

Live Mint  

By Siddhi Nayak MUMBAI, Dec 26 - Indian banks' financial position has stayed robust, marked by the sustained expansion in loans and deposits, while their gross bad loan ratio has dropped to multi-year lows, a central bank report showed on Thursday. Net bad loans of banks fell to 0.57% of total loans at September-end, from 0.62% at end-March, driven by …

Ghost of microfinance comes back to haunt IndusInd Bank
3 weeks, 3 days ago

Ghost of microfinance comes back to haunt IndusInd Bank

Live Mint  

IndusInd Bank’s shares hit a new 52-week low of ₹965.55 on Friday. IndusInd’s slippages in microfinance lending jumped almost 18% sequentially in Q2 to ₹398 crore. Sure, slippages in vehicle financing, too, rose 5% sequentially in Q2 to ₹692 crore, but the slippage in MFL is more alarming considering that the book size at the beginning of the quarter was …

NBFC-MFIs Debt Funding Drops 40.6 Percent in Q2 FY25
4 weeks, 2 days ago

NBFC-MFIs Debt Funding Drops 40.6 Percent in Q2 FY25

Deccan Chronicle  

Chennai: As NBFC-MFIs turned cautious of asset quality, micro loan disbursements declined 16 per cent in terms of value and 27 per cent in volume terms in Q2 FY25. Against the Q4 FY24, when Rs 40,440 crore was disbursed through 88 lakh accounts, Q2 disbursements were down by 39 per cent. As a result, assets under management of NBFC-MFIs were …

Asset reconstruction companies see spike in unsecured loan sales by lenders
1 month ago

Asset reconstruction companies see spike in unsecured loan sales by lenders

Live Mint  

Mumbai: Asset reconstruction companies are seeing a spike in the sale of bad debt in the unsecured retail loan portfolios of banks and non-banks, as stress rises in the microfinance and personal loan segments. Banks and non-bank lenders have been putting up more unsecured retail loans for sale to asset reconstruction companies over the past six months. Another challenge is …

Banking reforms need to get a lot more ambitious for the economy’s sake
1 month ago

Banking reforms need to get a lot more ambitious for the economy’s sake

Live Mint  

The 19 amendments to banking laws that were passed by the Lok Sabha on Tuesday remove various niggles in extant provisions, straighten out some others and make life easier for bank customers, especially a tweak that allows four nominees per account. While more than 90% of India’s nearly 60 million MSMEs are micro sized and best served by specialized non-bank …

Microfinance self-regulator expects stress to stabilize by January
1 month, 1 week ago

Microfinance self-regulator expects stress to stabilize by January

Live Mint  

Mumbai: Microfinance Institutions Network, the self-regulatory organization for the sector, expects the current bad loan stress that microlenders face to stabilize by January next year with new rules in place. The sector’s self-regulatory organization made key changes including reducing the number of lenders to a borrower to 3 from 4 earlier, and capping the maximum indebtedness of a borrower at …

NBFC-MFI growth to remain muted for this year and next
1 month, 2 weeks ago

NBFC-MFI growth to remain muted for this year and next

Deccan Chronicle  

Chennai: Micro loans by non-banking finance companies are likely to see a flat growth or decline in FY25 against 28 per cent growth in FY24. The Q2 results highlight the added stress for the sector, due to overleveraging and a cyclical slowdown in disbursements, both accentuating asset quality challenges. But in FY25, disbursements could be impacted as funding from lenders …

Microfinance meltdown: Five stocks that could come out on top
1 month, 3 weeks ago

Microfinance meltdown: Five stocks that could come out on top

Live Mint  

The microfinance sector is facing a severe downturn, with every small finance bank and non-banking finance company involved in microlending seeing declines of 30-50%. Equitas Small Finance Bank estimates that around 50% of loans overdue by 90 days eventually become NPAs, though this figure varies across lenders. Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen Ltd, and Arman …

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans
1 month, 3 weeks ago

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans

Deccan Chronicle  

Mumbai: Ujjivan Small Finance Bank on Friday said it is looking to sell Rs 270 crore worth of non-performing and written-off micro-banking loans to asset reconstruction companies. Of the Rs 270 crore worth of loans, around Rs 208 crore are non-performing loans, and the remaining Rs 62.36 crore worth of loans have been written off by the bank. In the …

Rising Defaults Among Retail Borrowers are Stressing India’s Top Banks
1 month, 3 weeks ago

Rising Defaults Among Retail Borrowers are Stressing India’s Top Banks

The Quint  

Given that India’s economic growth relies heavily on domestic consumption, any slowdown in lending could ripple through the broader economy, impacting sectors dependent on consumer spending. Moreover, as banks shift their focus from retail to secured loans to mitigate risks, small and medium enterprises could face reduced access to capital, hindering job creation and slowing down economic expansion. In October, …

Microfinance risk: Small loans can spell big trouble for Indian banks
1 month, 3 weeks ago

Microfinance risk: Small loans can spell big trouble for Indian banks

Live Mint  

Once bitten twice shy" goes the old adage. Driven perhaps by the lack of credit demand from corporates, a boom in retail credit, an eagerness to bridge the last- mile gap in credit delivery and pressure to achieve priority-sector lending targets, banks seem to have lowered their guard and gone overboard in extending such loans. To its credit, the Reserve …

Microfinance in doldrums. Will this company outperform, again?
1 month, 4 weeks ago

Microfinance in doldrums. Will this company outperform, again?

Live Mint  

MUMBAI : The true litmus test that differentiates high-quality lenders is whether they have “best-in-class" non-performing asset ratios during crises. View Full Image Source: CreditAccess IP-Q1FY25 For example, after taking a large provisioning hit in Q3FY21, it stated in the next quarter that “strong profitability in Q4 was utilized to absorb the accelerated write-offs and build additional provisioning buffer ahead …

NBFCs brace for slower growth as asset stress, fund costs pinch
2 months ago

NBFCs brace for slower growth as asset stress, fund costs pinch

Live Mint  

Mumbai: The September quarter results for non-banking financial companies were mixed, as most lenders felt the ripple effects of the Reserve Bank of India’s recent regulatory actions and slowdown in credit flow from banks. Higher funding costs and emerging asset quality concerns—especially in retail, unsecured, and microfinance portfolios—hit profitability in the second quarter, and may lead to a cut in …

Private Banks Brace for Credit Card and Loan Stress in Q2
2 months, 2 weeks ago

Private Banks Brace for Credit Card and Loan Stress in Q2

Live Mint  

Private banks continue to see stress in small-ticket advances, with all lenders barring HDFC Bank reporting a spike in bad loans. Axis Bank's gross slippages jumped 36% year-on-year to ₹4,443 crore, led by unsecured loans. Kotak Mahindra Bank's slippages were up 42% year-on-year, with a significant rise in bad loans in the credit card and microfinance portfolios.

MFI Risks Rise with Overleveraging in Bihar, UP
4 months, 1 week ago

MFI Risks Rise with Overleveraging in Bihar, UP

Deccan Chronicle  

Chennai: Increasing borrower leverage, especially in states like Bihar and Uttar Pradesh, is a key concern for the micro-finance segment. For MFI borrowers, the check on household leverage becomes paramount, as improved availability of loans from MFI players, government loans, Kisan Credit Card loans, mudra loans, gold loans, and other fintech loans could overleverage the end MFI borrower, impacting repayment …

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 …

India assessing need for more measures to slow unsecured lending, cenbank chief says
7 months ago

India assessing need for more measures to slow unsecured lending, cenbank chief says

Hindustan Times  

MUMBAI - India's central bank is assessing whether further measures would be needed to slow down the growth in banks' lending towards unsecured loans and non-banking finance companies, Governor Shaktikanta Das said on Friday. India assessing need for more measures to slow unsecured lending, cenbank chief says The Reserve Bank of India, has warned lenders against "all forms of exuberance" …

NBFC lenders find borrowing a costly affair
8 months, 4 weeks ago

NBFC lenders find borrowing a costly affair

Live Mint  

MUMBAI : Non-bank lenders are struggling through a spike in borrowing costs as banks have become cautious in lending to them following a regulatory warning, forcing these companies to diversify their money sources. The Reserve Bank of India in November increased the risk weights on NBFCs by 25 percentage points, making their cost of borrowing from banks costlier by 30-50 …

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 …

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data
1 year, 7 months ago

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data

Live Mint  

India’s microfinance sector has recorded an overall portfolio growth of 21% during 2022-23, as per data from industry body Sa-Dhan. Except for banks, all other institutions recorded double-digit growth, with non-banking financial companies recording a 49% growth and NBFC MFIs growing 37%. According to Jiji Mammen, executive director and chief executive of Sa-Dhan, the microfinance sector has shown significant performance …

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari
1 year, 10 months ago

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari

ABP News  

Banks in India could see a rise in bad loans or non-performing assets in the retail and small business segments from its recent low levels, an official with State Bank of India told news agency Reuters on Thursday. At an event in Mumbai, Ashwini Kumar Tiwari, managing director at State Bank of India said, "We cannot have a system where …

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report
2 years ago

Indian Banks GNPAs Down To 5% In September 2022, Macroeconomic Conditions Can Impact Banks Health RBI Report

ABP News  

Gross Non-Performing Assets of Indian banks declined to 5 per cent in september but the present macroeconomic environment can impact lenders' health, said a new Reserve Bank of India report. The report said, “from its peak in 2017-18, the GNPA ratio of SCBs has been declining sequentially to reach 5 per cent at end-September 2022.” It said that the number …

Microfinance lenders go for secured loans to diversify risk
2 years, 1 month ago

Microfinance lenders go for secured loans to diversify risk

Live Mint  

A clutch of microfinanciers is venturing into secured asset classes such as mortgages and gold loans to diversify their portfolio and balance the risk of unsecured microlending with loans that require collateral. The strategy change took shape after a Reserve Bank of India circular in March allowed microfinance institutions to lend 25% of their total assets in non-microfinance loans. Mid-caps, …

Up to 10% credit losses for MFIs in COVID years
2 years, 2 months ago

Up to 10% credit losses for MFIs in COVID years

Deccan Chronicle  

Mumbai: Small loan specialists that cater to people without bank accounts suffered credit losses of up to 10 per cent during the two years of the Covid pandemic, but recovered with stressed asset levels halving with the economy opening up. At a virtual press meet of the Microfinance Institut-ions Network, its CEO and director Alok Misra said the cumulative credit …

MSME sector records credit growth of 14% in 2022-23, says SBI Research report
2 years, 5 months ago

MSME sector records credit growth of 14% in 2022-23, says SBI Research report

Firstpost  

SBI Research said in its weekly report ‘Ecowrap’ that the sector has expanded by Rs 52,800 crore against degrowth of Rs 61,000 crore during the similar period of the previous year New Delhi: Credit growth to the Ministry of Micro, Small & Medium Enterprises sector has expanded by Rs 52,800 crore in the current financial 2022-23 year against degrowth of …

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’
2 years, 5 months ago

‘Govt., RBI measures help banks recover bad loans worth more than ₹8.6 lakh crore in last 8 fiscal years’

The Hindu  

Concrete steps taken by the government and RBI helped banks recover bad loans worth more than ₹8.6 lakh crore in the last eight financial years, the government informed Parliament on Monday. Several factors - including prevailing macroeconomic conditions, sectoral issues, global business environment, delayed recognition of stress by banks, aggressive lending during upturns, improper risk pricing and poor credit underwriting …

Bad loans: Why, this time, it’s different
2 years, 9 months ago

Bad loans: Why, this time, it’s different

Hindustan Times  

Non-performing assets or bad loans of banks have come down to their lowest levels, Reserve Bank of India governor Shaktikanta Das said at a Confederation of Indian Industry event on March 21. When seen in the context of gross NPA share falling to 6.9% of all loans, according to RBI’s Financial Stability Report released in December 2021 — the latest …

MFIs should balance social goals with growth: RBI Deputy Governor M Rajeshwar Rao
3 years, 2 months ago

MFIs should balance social goals with growth: RBI Deputy Governor M Rajeshwar Rao

Deccan Chronicle  

Mumbai: Reserve Bank of India deputy governor M. Rajeshwar Rao on Wednesday said lenders in the microfinance sector while chasing higher loan growth and returns, should refrain from adverse actions such as over-indebtedness, harsh recovery practices and harassment of customers, which would undo the tremendous progress achieved by the sector in financial inclusion over the decades. “The roots and origin …

MFIs flag rural borrower distress to RBI
3 years, 8 months ago

MFIs flag rural borrower distress to RBI

The Hindu  

The pandemic’s second wave is affecting rural households far more than last year, with a large number of microfinance staffers, borrowers and their families hit by COVID-19, impacting many more livelihoods than during the first wave. The trend, which poses a higher risk of loan delinquencies if the rising infections don’t taper off by the end of May along with …

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA
3 years, 8 months ago

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA

Hindustan Times  

The rising Covid-19 cases has again raised concerns on asset quality of retail loans from non-banking financial companies and housing finance companies, according to investment information agency ICRA. Following the second wave of the pandemic, ICRA expects securitisation volumes to again get impacted in Q1 FY22 as NBFCs and HFCs will be more selective in fresh lending. However, said ICRA, …

Assam shakes up the micro loans universe
3 years, 10 months ago

Assam shakes up the micro loans universe

Live Mint  

Having faced loan recovery agents for the past couple of years, Pravabati Bordoloi was no stranger to strong-arm tactics. What began as a local movement against the harassment of borrowers in Upper Assam led to the state’s BJP government passing a bill in December 2020—Assam Microfinance Institutions Bill, 2020—that is seen by the microfinance industry as an overreach. “If we …

Central bank to review rules as Assam eyes curbs on MFI ops
3 years, 11 months ago

Central bank to review rules as Assam eyes curbs on MFI ops

Live Mint  

The Reserve Bank of India’s decision to look at a uniform regulatory framework for all microfinance lenders, though being discussed for more than five years now, has been brought into focus by an Assam government bill to regulate microlenders in the state, experts said. Uniformity in rules has been sought since Bandhan Financial Services turned into a bank in 2015 …

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?
4 years ago

Data | Why did bad loans in banks reduce despite COVID-19 and economic downturn?

The Hindu  

The ratio of Gross Non-Performing Assets in Indian banks decreased in FY20 and FY21 despite the impact of COVID-19 and the economic downturn that preceded it. This was mostly due to three factors: 1) Banks wroteoff relatively more NPAs in FY20 to clean their balance sheets; 2) Some large NPA accounts got resolved through debt-recovery channels; and 3) It is …

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P
4 years, 1 month ago

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

The Hindu  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11% of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is “masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 1 month ago

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P

News 18  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is ”masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the …

Asset quality of Indiabulls Housing Fin, IIFL Finance vulnerable: Moody's
4 years, 1 month ago

Asset quality of Indiabulls Housing Fin, IIFL Finance vulnerable: Moody's

Business Standard  

Asset quality of Indiabulls Housing Fin, IIFL Finance vulnerable: Moody's The agency said Muthoot Finance the third non-bank finance company it rates is better positioned because of its focus on the gold loans business. Premium A modest loan growth and loan sales will help IIFL and Indiabulls maintain capitalisation despite the weakening of profitability Asset quality at non-bank lenders IIFL …

An Odisha-based micro lender at the centre of a ₹251 crore loan fraud
4 years, 2 months ago

An Odisha-based micro lender at the centre of a ₹251 crore loan fraud

Live Mint  

MUMBAI: A fraud of ₹251 crore unearthed at a small Odisha-based non-banking financial company micro-finance institution has put the spotlight on “bogus accounts” as the modus operandi for fund diversions. “There is also pilferage in the cash withdrawn for disbursement by the managing director and CEO, and diverted to other entitles namely Diya Dairy & Agroprocessors Pvt Ltd, Kshamta Foundation, …

Pandemic-driven Loan Recast to Take Gross Non-performing Assets to 11.5% by March: Report
4 years, 2 months ago

Pandemic-driven Loan Recast to Take Gross Non-performing Assets to 11.5% by March: Report

News 18  

The pandemic-induced one-time loan restructuring will spike the system-wide gross non-performing assets to 11-11.5 per cent by March, says a report. The system-wide GNPAs stood at 8.2 per cent in Q1 of FY21, down from 9.5 per cent in Q1 FY20, thanks to the recoveries and higher write-offs during the period. Of the total dud loans, state-run banks accounted for …

India Ratings maintains negative outlook on NBFCs, HFCs for H2 FY21
4 years, 3 months ago

India Ratings maintains negative outlook on NBFCs, HFCs for H2 FY21

India TV News  

Domestic rating agency India Ratings and Research on Thursday said it has maintained a negative outlook on non-banking financial companies and housing finance companies for the second half of 2020-21. "We have maintained a negative outlook on the non-banking finance company and housing finance company sectors for 2HFY21, amid COVID-19 related business disruptions," the rating agency said. While it has …

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore
4 years, 3 months ago

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore

News 18  

Banks' non-performing assets in large industry and services declined 31 per cent in over two years to about Rs 4.36 lakh crore in June this year, Parliament was informed on Monday. "As per Reserve Bank of India data on domestic operations, NPAs of scheduled commercial banks pertaining to large industry and services have come down to Rs 4,36,492 crore as …

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 …

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 …

Coronavirus slump: NBFCs cast shadow on economic recovery
4 years, 8 months ago

Coronavirus slump: NBFCs cast shadow on economic recovery

Live Mint  

In the second week of April, deep into India’s initial 21-day lockdown to curtail the spread of the coronavirus, senior officials at Bajaj Finance Ltd. held a conference call. Now, if bad loans rise as many including the central bank expect, banks and shadow lenders are set to become ever more cautious just when credit is most needed to keep …

Drop in borrowing costs shows India NBFC crisis may ease
4 years, 11 months ago

Drop in borrowing costs shows India NBFC crisis may ease

Live Mint  

Borrowing costs for India’s top-rated shadow financiers declined last month, indicating that the nation’s prolonged credit crisis may be seeing some improvement. Premiums that investors seek to buy AAA rated five-year bonds of non-bank lenders over government notes with similar maturities narrowed to a 16-month low in January, helping a gauge measuring bond spreads to strengthen. Supporting these financiers is …

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 …

In 2020, muted credit growth, not bad loans, will be banks’ main concern; a lot will depend on early economic rebound
5 years ago

In 2020, muted credit growth, not bad loans, will be banks’ main concern; a lot will depend on early economic rebound

Firstpost  

In the first seven months of the current financial year, the credit growth to large industries contracted by 3.4 percent as against a growth of 0.2 percent in the year-ago period. The gross NPA ratio of banks, which stood at 9.3 percent of the total loans in March 2019 could rise to close to 10 percent in September 2020, according …

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