Budget 2020

Home, consumer loans from NBFCs to become cheaper

New borrowers of NBFCs and MFIs will have to pay lower interest from the first quarter of the new financial year 2021-22. Apart from new borrowers this interest rate reduction will also benefit individuals who have taken floating rate loans such as home loan from these lenders. RBI has released the latest average base rate […]

Budget 2020

Whatever banks are reporting does not present the full picture: Saswata Guha, Fitch Ratings

We are pretty mindful of the fact that a fair degree of underwriting has been done by banks over the last three to four years in certain cases quite aggressively and some of that underwriting is probably yet to see the right kind of seasoning yet, says Saswata Guha, Director & Team Head, Fitch Ratings. […]

Budget 2020

We need a buyer of last resort for capital market: Nilesh Shah

If small savings rates are aligned to government securities, then RBI allowing retail investors to open gilt accounts could lead to a lot of retail participation, says Nilesh Shah, MD, Kotak AMC. RBI has proposed to provide funds from banks to NBFCs under the TLTRO on tap scheme. This has been a long-standing demand for […]

News Headlines

RBI brings UCBs, NBFCs under new risk audit

The Reserve Bank of India (RBI) has brought all deposit taking non banking finance companies (NBFCs), non deposit NBFCs with assets of Rs 5000 crore and more and also urban co-operative banks (UCBs) with assets of Rs 500 crore and above under a risk based internal audit (RBIA) framework. In a notification the RBI has […]

Budget 2020

Shriram Transport Q3 results: Profit falls 17% on additional pandemic provision

Shriram Transport Finance Company on Thursday reported 17 per cent decline in net profit at Rs 727.72 crore for December quarter 2020-21 as it made additional provisions related to the COVID-19 pandemic. The key net interest income rose to Rs 2,148.22 crore from Rs 2,113.75 crore in the same period of the previous year. The […]

Budget 2020

Proposed NBFC norms may strengthen their balance sheets: Moody’s

The Reserve Bank of India‘s recent proposal for tighter regulatory framework for non-banking financial companies may strengthen their balance sheets but will not address their funding and liquidity issues, says a report. Last week, RBI released a discussion paper which proposed a scale-based regulatory approach linked to the systemic risk contribution of shadow lenders. In […]

News Headlines

Budget 2021: NBFCs seek TDS exemption on interest income

Taxes deducted at source don’t just bite pensioners living on interest income. They hurt big non-bank lenders, too. About a dozen non-banking finance companies (NBFC) have approached the finance ministry seeking an exemption from Tax Deducted Source (TDS) on their interest income. The facility is available to high-street banks. “Exemption from TDS and Thin Capital […]

News Headlines

Infrastructure credit grew marginally to Rs 22.6 lakh crore in H1FY21, says new report

MUMBAI: Infrastructure credit by banks and NBFC-IFCs in the country marginally grew to Rs 22.6 lakh crore in the first half of the current fiscal compared to Rs 22.5 lakh crore in 2019-20, says a report. “While the infrastructure credit grew 7 per cent in FY2020 (19 per cent in FY2019) to Rs 22.5 lakh […]