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

Why PSU banks & NBFCs may be a better bet over next 1 year

Incremental investments may go into PSUs as well as smaller private sector banks just to get the alpha going, says Dipan Mehta, Director, Elixir Equities. Barring the post Budget rally when the banks actually led the charge, we have seen stark underperformance from banks. Even the most preferred ones on the street like an ICICI […]

News Headlines

RBI proposes scale-based regulations for shadow banks

MUMBAI: The Reserve Bank of India (RBI) has proposed a four-layered structure for regulating non-banking finance companies (NBFCs) aimed at tighter capital, lending and governance norms in order to prevent defaults such as those at Infrastructure Leasing & Financial Services (IL&FS) and Dewan Housing Finance Corp. Ltd (DHFL). Not more than 25-30 large non-bank lenders […]

Budget 2020

NBFCs expect higher credit loss, says EY study

Non-Banking Financial Companies (NBFCs) are expecting higher credit loss as well as an increase in provision coverage rates, mainly due to the impact of the COVID-19 pandemic, according to a study. The study by EY is based on an analysis of the financial statements of 42 NBFCs for the year ended March 31, 2020. The […]

Budget 2020

Market Watch: More fuel left in banking stocks? | The Economic Times Markets Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul P. M and here are the top headlines at this hour. RBI working group suggests permitting large NBFCs to convert into banksRBI panel suggests raising cap on promoter stake in private banksSensex bounces back after 1-day hiatus, logs weekly […]

Budget 2020

​RBI panel in favour of letting well-run large NBFCs convert into banks

NEW DELHI: A panel set up by the Reserve Bank of India (RBI) in June on Friday recommended that well-run large non-banking finance companies (NBFCs), with an asset size of Rs 50,000 crore and above, may be considered for conversion into banks. This is subject to the completion of 10 years of operations and meeting […]

News Headlines

Borrowing costs for India’s shadow banks retreat after RBI move

By Divya Patil and Anil Poonia India’s central-bank move to pump more cash in the credit market has improved the health of shadow lenders, helping to assuage concerns about their revival prospects. Average spreads on the lenders’ AAA rated five-year bonds fell by the most in four months in October. Three other indexes tracking shadow […]

Budget 2020

Card machines emerge as new agents for loans

(This story originally appeared in on Oct 31, 2020) MUMBAI: The card swipe machine is replacing the in-store finance executive. Not only are banks extending personal loans against card swipes, but customers in the smallest of towns are making purchases with zero-interest EMIs. This is because vendors like mobile manufacturers are able to provide interest […]