NBFC - NewNerve

Aditya Birla’s Financial Businesses Set to Soar: Expects 19%-21% Growth in 3-5 Years

17Apr

By Ankit1 Comment

NBFC, BFSI

Aditya Birla’s Financial Businesses Set to Soar: Expects 19%-21% Growth in 3-5 Years

In an exciting development for the financial sector, Aditya Birla Group, one of India's leading conglomerates, has announced its optimistic outlook for the growth of its key financial businesses. Chairman Kumar Mangalam Birla unveiled the group's projections, stating that they anticipate a remarkable compounded annual growth rate (CAGR) of 19% to 21% over the next three to five years. This revelation signals a strong commitment to expanding their presence and influence in the financial services industry. Announcement from Aditya Birla Capital During a recent event in Mumbai, Aditya Birla Capital, the financial services arm of the group, introduced a digital application called ABCD. This innovative platform aims to attract a substantial customer base, with a target of acquiring 30 million...

SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits

17Apr

By Ankit1 Comment

Banking, Finance, NBFC

SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits

State Bank of India (SBI), one of India's largest public sector banks, is urging the government to provide a full tax rebate on the interest earned by senior citizens on their deposits. The bank estimates that senior citizens have earned a staggering Rs 2.7 lakh crore in interest, and by assuming an average tax payment of 10%, approximately Rs 27,106 crore could be collected as tax revenue. SBI argues that granting a full tax rebate on these earnings would not impact the government's fiscal deficit and would be a fair measure to support senior citizens. Rising Deposit Rates and Special Schemes: The surge in deposit rates, coupled with higher interest rate differentials for senior citizens, has led to a significant increase in deposit accretion among this demographic. SBI highlights the s...

RBI Imposes Penalty on The Uttarakhand Grameen Bank for Regulatory Non-Compliance

9Apr

By AnkitNo Comments

Banking, Finance, NBFC

RBI Imposes Penalty on The Uttarakhand Grameen Bank for Regulatory Non-Compliance

Dehradoon. The Reserve Bank of India (RBI) has recently wielded its regulatory authority by imposing a monetary penalty of ₹5.00 lakh on The Uttarakhand Grameen Bank located in Dehradun. The penalty comes as a result of the bank's failure to adhere to the provisions outlined in the Banking Regulation Act, 1949. This move by the RBI underscores the importance of regulatory compliance within the banking sector. The penalty, issued on March 27, 2024, stems from the bank's contravention of section 26A(2) in conjunction with section 51 of the BR Act. The statutory inspection of the bank, conducted by the National Bank for Agriculture and Rural Development (NABARD), highlighted non-compliance with statutory provisions, prompting the RBI to initiate necessary action. During the inspection, ...

RBI’s Regulatory Moves: Personal Loan Growth Slows Down

8Apr

By Ankit4 Comments

Digital Lending, Fintech, NBFC, Startups

RBI’s Regulatory Moves: Personal Loan Growth Slows Down

The FinTech sector isn’t the only one feeling the impact of regulatory actions. Banks are now treading carefully in the realm of personal loans, thanks to the Reserve Bank of India’s (RBI) recent moves. Let’s delve into the details and understand how this cautious approach is affecting borrowers and lenders alike. Moderated Growth in Personal Loans According to RBI data, the year-on-year growth of unsecured personal loans has taken a step back. In February, it moderated to 23.1%, down from 24.4% in January and 27.6% in December 2023. This shift reflects banks’ response to the RBI’s concerns about the rapid expansion of personal loans. But what prompted this change? Let’s explore: The RBI’s Action Plan In November of last year, the RBI decided to tighten t...

Navi’s 90-10 Rule: Scaling Up Despite RBI’s Unsecured Loan Norms

5Apr

By Ankit1 Comment

NBFC, Digital Lending, Fintech, Startups

Navi’s 90-10 Rule: Scaling Up Despite RBI’s Unsecured Loan Norms

Navi Technologies Scaling Up Despite RBI’s Unsecured Loan Norms In an exclusive interview with Moneycontrol, Navi Technologies founder and chairman Sachin Bansal revealed that despite the recent tightening of risk weight for unsecured loans by the Reserve Bank of India (RBI), the company has been scaling well. Navi Finserv, a fintech company, is currently offering its third non-convertible debentures (NCDs) with an issue size of Rs 600 crore. Notably, around 90 percentof Navi’s portfolio consists of unsecured loans, such as personal loans, while the remaining 10 percent comes from home loans. Also Read:Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32% What’s particularly interesting is that two-thirdsof Navi Technologies’ cus...

Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32%

4Apr

By Ankit1 Comment

BFSI, Digital Lending, Lending, NBFC

Microfinance Sector Witnesses Robust Growth: Loan Accounts Surge 9% and NBFC Disbursements Soar 32%

The microfinance sector in India is experiencing a remarkable surge in loan accounts, with significant growth indicators across various metrics. Let’s delve into the latest developments: Loan Accounts Reach New Heights As of December 31, 2023, the number of microfinance loan accounts serviced by micro lenders has witnessed a 9% year-on-year increase, totaling an impressive 140.8 million accounts. This surge reflects the growing demand for microfinance services, especially among underserved communities. Diversified NBFCs Lead the Way Notably, diversified non-banking financial companies (NBFCs) have played a pivotal role in driving this growth. Their microfinance disbursements surged by an astounding 32% year-on-year during the December quarter, marking the highes...

Credit Line on UPI: 5 Opportunities Shaping the Future of Finance

30Mar

By AnkitNo Comments

BFSI, NBFC, Payments

Credit Line on UPI: 5 Opportunities Shaping the Future of Finance

The emergence of Credit Line on UPI represents a significant leap forward in the financial landscape. This pioneering financial offering promises to reshape the lending landscape, providing individuals and businesses with seamless access to pre-sanctioned credit lines from banks, coupled with the convenience of UPI. Since its introduction in September last year, fintechs have been quick to capitalize on this breakthrough. As this transformative wave continues to gain momentum, we anticipate the following disruptions taking shape, bringing in a new era of financial accessibility and innovation. 1. UPI In-store EMI: Redefining Consumption Finance In the realm of financial innovation with Credit Line on UPI, UPI In-store EMI stands out as a groundbreaking B2B2C strategy. By first targeting ...

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

27Mar

By AnkitNo Comments

NBFC, Wealthtech

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

Bajaj Housing Finance Gears Up for IPO, Targets Multi-Billion Dollar Valuation Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, has commenced preparations for an initial public offering (IPO) with the goal of achieving a valuation between $9 billion and $10 billion. The move comes as a result of regulatory requirements imposed by the Reserve Bank of India (RBI) on "upper layer" non-banking financial companies (NBFCs) to list within three years of identification. Let's delve into the details of this upcoming IPO. Preparations for IPO: Bajaj Housing Finance has reportedly entered into preliminary discussions with various investment banks regarding the potential IPO. The company aims to raise approximately $900 million to $1 billion through the IPO, considering the minimum dilutio...

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

27Mar

By Ankit2 Comments

Digital Lending, NBFC

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

The Reserve Bank of India (RBI) recently implemented a significant increase in risk weight for bank exposures to Non-Banking Financial Companies (NBFCs). This move is expected to have a notable impact on incremental bank lending to the NBFC sector. In this article, we will explore the implications of the RBI's decision and discuss the potential consequences for the lending landscape. Key Points: Decrease in Bank Loans to NBFCs: As of January 2024, outstanding bank loans to NBFCs stood at Rs 15.03 trillion. However, in FY23, banks extended only Rs 3.08 trillion to finance companies, a significant decline compared to the previous year's Rs 73,831 crore. This downward trend can be attributed to various factors, including the tightening of risk weights by the RBI. Projections for FY25: ...

Exploring NBFC Connect 2024: India’s Premier NBFC Summit

19Mar

By AnkitNo Comments

Events, NBFC

Exploring NBFC Connect 2024: India’s Premier NBFC Summit

NBFC Connect Summit, 2024: In the dynamic landscape of India's financial sector, the Non-Banking Financial Companies (NBFCs) play a crucial role in driving economic growth and providing financial services to various segments of the population. One event that brings together industry leaders, experts, and stakeholders to discuss emerging trends, collaborations, and innovations in the NBFC sector is the NBFC Connect Summit. In this blog post, we will delve into the key highlights and significance of the NBFC Connect 2024 Summit. Event Overview: The NBFC Connect Summit, organized by ET BFSI (Economic Times - Banking and Finance Services Intelligence), serves as a platform for knowledge-sharing, networking, and collaboration within the NBFC ecosystem. The upcoming edition, NBFC Connect 20...