Month: December 2020

Mumbai: Domestic rating agency ICRA Ratings on Thursday said the collection efficiency in its rated retail pools originated by NBFCs and HFCs remained steady in October, compared to September, for almost all retail asset classes. While the total collections, including advances, overdues and pre-payments, are indicating a significant recovery, the current collections inclusive of overdue (against current month billings) continue to remain below the pre-lockdown levels, the agency said in a report. They are in the range of 81-95 per cent across asset classes in October 2020, it added. In October, the collection efficiency in housing loan and loan against property (LAP) segments stood at 207 per cent. For SME, commercial vehicle and microfinance institutions (MFIs), the collection efficiency...

MUMBAI: NBFCs are set to lose market share to commercial banks specially in the retail space. After outpacing banks in terms of loan growth for more than two years, NBFCs are set to slowdown in growth as the sector faces funding challenges due to COVID induced funding challenges and competition from commercial banks, according to ratings firm Crisil. “Despite an estimated GDP growth of 10% next fiscal, overall NBFC sector growth is likely to be slower because access to funding remains a challenge due to concerns about the impact of the pandemic on asset quality" said Gurpreet Chhatwal, President, Crisil Ratings. "Additionally, competition is expected to be more intense from banks – which are flush with low-cost deposits and better placed with improved capital buffer than in the previous y

Mumbai: The new dividend distribution policy for non-banking lenders is unlikely to impact most of them as their payout ratios have been hovering at 10-20 for the past three years, according to a report. The Reserve Bank of India on December 9 issued a new draft dividend distribution policy for NBFCs to ensure financial discipline and transparency under which only those NBFCs that meet the prescribed prudential requirements on capital and asset quality will be allowed to pay dividends. The new payout norms assume importance as unlike banks, currently, there are no guidelines in place concerning the distribution of dividend by NBFCs. The RBI had on October 4 asked banks to not to pay dividend this year given their stretched balance sheets pummelled by the pandemic. One of the norms pres...

IL&FS financial services arm IFIN has put NPA accounts of Essar Shipping, Reliance Naval & Engineering, Unitech, Parsvnath Developers, Ansal API among others on the block. Corporate loans of 70 companies worth Rs 5,000 crore have put been on the block and will be put through a bid process. The deal will be on cash consideration basis with the beleaguered group seeking one consolidated bid for the entire portfolio. Applicants have to submit binding bids by next month. IFIN is owed a principal amount of Rs 209 crores from Unitech Limited, Rs 174 crore from Parsvnath Developers, Rs 135 crore from Ansal Group, Rs 25 crore from Essar Shipping and Rs 5 crore from Reliance Naval. IFIN has assets under management of Rs 18,000 crore involving external and internal loans and investments, a ...

Mumbai: State Bank of India (SBI) will follow ICICI Bank's unprecedented move to open its mobile application to use by other bank's customers using the UPI platform, opening a new front in the battle for new customers and cheap deposits in the banking sector. ICICI on Monday announced that customers of any bank can link their bank account generate a UPI ID and start sending and receiving money to any bank account, payment app or digital wallet immediately. Moreover customers will also get instant access to the entire range of ICICI Bank’s banking services. Anup Bagchi, executive director, retail banking at ICICI said the bank hopes to benefit from new customer leads and ultimately deposits in the long run by allowing other bank customers to use its application. "The NPCI's digital infras

New Delhi: Private sector insurer Max Life Insurance has said that it anticipates double-digit growth of over 10 per cent in the current fiscal amid a gradual pick-up in business. The second half should be better than the first half and it is evident from each passing month, Max Life Insurance CEO and managing director Prashant Tripathy told. "Max life has done significantly better than the private industry as a whole and we have been growing for the past many months. For the first seven months, Max Life Insurance has registered a 9 per cent growth rate versus a contraction of 8 per cent in the same period a year ago. We have been gaining market share as a result of this," he said. For the first half, he said, the market share was 11 per cent which is the highest in the last 10 years. "...