NBFC
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RBI’s intervention in unsecured loans could hurt growth of banks, NBFCs
Post Covid-19, most lenders have turned pro-risk and, in the quest to accelerate growth/profitability, are chasing unsecured loan growth, including PL, Cards.
14 NBFCs surrender licences to RBI
These NBFCs include Shivam Hire Purchase & Finvest, Sun Finlease (Gujarat), Chitrakoot Motor Finance and Alkan Fiscal Services among others. As many as 10 of these NBFCs have surrendered their licence due to exit from the non-banking financial institution (NBFI) business.
Exposure of banks’ mutual funds to NBFCs increased in August: CARE Ratings
According to CARE Ratings, the credit exposure of banks to NBFCs stood at Rs. 13.8 lakh crore in August 2023, indicating a 25.8 per cent year-on-year (y-o-y) growth.
NBFCs leaning more heavily on banks to raise funds
"NBFCs, particularly NBFCs in the upper layer, have increased bank borrowings, accounting for nearly half of their total borrowings as at the end of December 2022," the bulletin states.
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