Nbfc

A sharp increase in cost of funds and tightening of regulations by the Reserve Bank of India (RBI) may pose challenges to non-banking financial companies (NBFCs), said experts. “We could see a rise in borrowing cost for NBFCs due to the competition with banks as players are offering higher and competitive rates,” said Vijay Gour, lead analyst, BFSI research, at CareEdge. In a rising interest scenario, the cost of borrowings for NBFCs is expected to rise by 100-120 basis points (bps) in 2022-23, a CRISIL report said. Echoing this, Jinay Gala, associate director, India Ratings and Research, said that there is an uptick in funding demand from NBFC players due to strong growth seen in fiscal 2023. “One may expect funding costs to increase for lenders as liabilities get repriced higher in the coming months and we would see lenders passing on the rate hike pressure to certain floating segments like housing, unsecured etc,” Gala said. The RBI in its Trend and Progress Report … [Read more...] about Tight regulations, rising cost of funds can pose challenges to NBFCs, say experts

Building a business isn’t everyone’s cup of tea. It takes immense capital and years of effort to make an idea work. And to see all those hard-won gains collapsing like a pack of cards is heart-wrenching. Kishore Kumar Puli, 52, a microfinancier who lost everything in the microfinance crisis a decade ago, is one entrepreneur who had to go through that harrowing experience. However, Puli, who started from humble beginnings, isn’t someone to give up easily. His firm, Trident Microfin Pvt. Ltd, one of the country's big microfinance institutions (MFIs), was forced to shut down during the Andhra Pradesh microfinance debacle in 2010 that followed a draconian state law. Trident was the only big MFI that shut down operations in the state. Puli is now making a comeback in a new avatar - through a non-banking financial company (NBFC) focusing on a Business Correspondent (BC) Model. Puli's new venture, Pradakshana Fintech Pvt Ltd, now boasts a Rs 100 crore loan book, around … [Read more...] about Rising from the ashes: The fall of Trident and rise of Pradakshana

While PNB's original exposure (to Adani group) was about Rs 6,500-7,000 crore, but the present outstanding is about Rs 3,500 crore Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × State-run Punjab National Bank (PNB) is keeping a close watch on developments pertaining to the Adani group, said Managing Director and CEO Atul Kumar Goel in an exclusive conversation with Moneycontrol on February 24. "We are keeping a close watch on the developments and will see how things pan out," said Goel. He added that PNB’s exposure to the group is within the policy framework of the bank and the guidelines set by the regulators. That apart, Goel spoke on industry issues and PNB’s business plans. Below are the edited excerpts: What is your exposure to the Adani group? As we have already said earlier, our original exposure (to Adani group) … [Read more...] about MC Interview: Closely watching Adani group developments, says PNB MD & CEO Atul Kumar Goel

Representative image PRO Only Highlights - Quarterly performance largely backed by improved realisations - Medium-term triggers China plus and protectionist measures for tyre industry - Valuations not inexpensive; but improved medium-term outlook Highlights: Stellar Q3 performance across key parameters Good momentum seen in the home finance segment Healthy asset growth and return ratios Best-in-class asset quality, benign credit cost Favourable risk-reward on meaningful tailwinds Sundaram Finance (CMP: Rs 2,306; Market cap: Rs 25,619 crore) has logged a solid quarter with best-in-class asset quality. The highest ever 9M disbursement and a significantly broad-based growth were seen across asset classes and geographies in the quarter ended December. The momentum continued from the previous quarters. The PAT (profit after tax) came in... … [Read more...] about Sundaram Finance: Growth on track, focus to shift on driving margin

PRO Only Highlights - Quarterly performance largely backed by improved realisations - Medium-term triggers China plus and protectionist measures for tyre industry - Valuations not inexpensive; but improved medium-term outlook Highlights Improved earnings trajectory post pandemic AUM growth accelerates to 30 percent Disbursement growth maintains momentum Maintains stable margin and expects this to sustain despite rising rates Asset quality solid – not a cause for worry Valuation attractive for a long-term investor Mas Financial (CMP: Rs 808, Market Cap: Rs 4,419 crore) has underperformed in the past four months with a decline of over 10.6 percent as against a 4 percent fall in the Nifty. This is despite a consistently improved performance post pandemic and one... … [Read more...] about Mas Financial – Current market correction a window to add this high-quality name

HDFC Life Leading private sector life insurer HDFC Life expects its margins to improve further in the fourth quarter, having already neutralised the hit it had taken from the merger of Exide Life three quarters earlier than expected. The company closed the December quarter with a new business premium margin of 26.8 percent. Its FY22 VNB (value of new business) margin stood at 27.4 per cent and the management is confident of reaching there or making a further improvement as it closes the current fiscal. Over the weekend, HDFC Life reported a 15.2 per cent growth in net income at Rs 315.22 crore on a net premium income of Rs 14,379.38 crore, which rose 18.6 per cent annualised from Rs 12,124.36 crore. Its first-year premium stood at Rs 2,724.87 crore, up from Rs 2,115.97 crore, and the renewal premium soared to Rs 7,187 crore from Rs 5,543.03 crore. At 26.8 per cent, the VNB margin is already at the pre-merger level, neutralising the impact of the merger of Exide Life (in … [Read more...] about HDFC Life sees better margins in Q4

Non-banking financial company (NBFC) Indiabulls Housing Finance on March 3 launched tranche V of its secured issue of non-convertible debentures (NCDs). The tranche includes a base issue size of Rs 100 crore with an option to retain oversubscription of up to Rs 800 crore, aggregating up to Rs 900 crore. The tranche V issue is within the shelf limit of Rs 1,400 crore the company is looking to raise via these NCDs. The company intends to use 75 percent of the funds for onward lending, financing, refinancing existing debts and the rest for general corporate purposes. About the issue The latest tranche offers various series of NCDs for subscription, with coupon rates ranging from 8.88-10.15 percent per annum. The issue has tenures of 24 months, 36 months and 60 months. Effective yield (per annum) for the NCD holders in Category I (institutional investors) and Category II (non-institutional investors) ranges from 9.24-9.64 percent. For Category III (high net-worth … [Read more...] about Indiabulls Housing’s NCD issue offering 10.15% opens; should you invest?

Muthoot Finance has hiked the interest rates payout by 0.35-0.50 percent compared with the last issue, which was launched in November 2022. Gold loan non-banking finance company (NBFC) Muthoot Finance on February 8 launched the tranche V of its secured issue of non-convertible debentures (NCDs). It has a base issue size of Rs 100 crore with an option to retain oversubscription up to Rs 400 crore aggregating up to a tranche limit of Rs 500 crore. Muthoot Finance has hiked the interest rates by 0.35-0.50 percent compared with the last issue, which was launched in November 2022. The issue There are seven investment options for the NCDs with monthly or annual interest payment frequency or redemption payments on maturity with interest rates ranging from 8.25 percent per annum to 8.60 percent per annum for individual investors. Also read | Check out Moneycontrol’s curated list of 30 investment-worthy mutual fund schemes The NCDs have been rated AA+ with a stable … [Read more...] about Muthoot Finance’s Rs 500-crore NCD issue opens; Should you invest?

"It's liquidity that moves markets."  - Stanley Druckenmiller And, right now, there does not seem to be enough of it going around. March usually is a tough month for stock market bulls because of portfolios being shuffled and money pulled out of the system to balance the books for year-end accounting. Add to that low retail investor participation, relentless selling by FIIs and persistent concerns about interest rates and expensive valuations. Not a pretty picture at all. Brokers say tighter SEBI regulations regarding margin collection on both buying and selling of shares is also one of the factors weighing down the market. “Earlier we would see a lot of opportunistic buying by retail investors in a falling market because the broker was able to fund the purchase temporarily,” said a broker. “That’s no longer possible under the new rules where the margins need to come from the client itself. That means one cushion less to support the price,” the broker said. The bank … [Read more...] about Short Call | Margin rule woes, brokerage wars, flight to safety

Many overseas-bound Indian students will be heading to universities abroad - the US, UK, Canada and Europe - in August or September. Starting July, the period is bound to be hectic for students and their parents, as they scramble to complete admission and travel-related paperwork, besides arranging funds for travelling to, studying and living on university campuses or elsewhere in their destination countries. To guide such students and also those who are planning to pursue education overseas in the medium to long-term, we, at Moneycontrol, have put together a special series centred around popular courses, top universities, the right approach to investing for children's education as also applying for scholarships and education loans. To understand how parents can invest towards their children's higher education expenses and jointly plan taking education loans to make good any shortfall, Moneycontrol's Preeti Kulkarni spoke to Arindam Sengupta, Co-founder, Edufund, a … [Read more...] about Simply Save | Students & parents must check their financial preparedness while obtaining educations loans