Muthoot Microfin, headquartered in Ernakulam and part of the Muthoot Pappachan group, aims to secure $50 million through external commercial borrowing (ECB) to diversify its funding sources and extend liability duration. The CEO anticipates a syndicated deal at a lower cost than the current average cost of funds.
The Japanese financial company has expanded its presence to 990 branches across India. SMICC is registered as an NBFC-Investment and Credit Company (NBFC-ICC) with RBI and is a wholly-owned subsidiary of SMFG
Rebello said that the company has started centralising operations in the last six months to overcome the challenges of decentralised operations - how it was structured historically.
The company while announcing the results told that the capital was raised in two tranches during the year from TPG, which has strengthened Grihum’s balance sheet and led to the moderation of leverage ratio to 2.4x. Talking exclusively with ETBFSI, on the sidelines of the results announcement, Manish Jaiswal, the MD&CEO of Grihum Housing Finance talked about the company’s business plans for the coming year.
“We closed a very successful FY24 with the highest ever profit after tax, consistent growth in AUM, healthy return ratios and overall robust operational and financial metrics," managing director Devesh Sachdev was quoted as saying in a note issued by the company.
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Last November, the Reserve Bank of India (RBI) heightened risk weights on bank exposures to NBFCs by 25 percentage points, necessitating varied funding strategies beyond bank reliance.
The company is a NBFC-MFI (non-banking finance company - micro finance institution) offering loan products, such as micro enterprise, small enterprise, consumer goods, festival, education and emergency loans, and focuses on the lending model of 'self-help group'. Muthoot Finance owns a 66.13% stake in Belstar.
With new residential property launches increasing pace, most of the HFCs have further strengthened their distribution networks and expanded to Tier2 and Tier 3 towns. In an interaction with ETBFSI, the industry leaders highlighted a few key trends that are driving the growth. They range from use of tech, collaboration between banks and NBFCs, customised loan products and alternate credit scoring. Here is the detailed analysis:
The shares of public sector banks (PSBs) and state financial institutions were under pressure falling up to 9% on the BSE. RBI guidelines mentioned that 5% general provision should be made on all existing and fresh project loans which are in the construction phase, meaning before commercial operations commence. Here's what the guidelines said, and how the shares responded:
Mumbai (Maharashtra) [India], UGRO Capital Limited (NSE: UGROCAP) (BSE: 511742), a leading DataTech NBFC focused on MSME lending, today announced a significant development that underscores its commitment to growth, innovation, and delivering value to stakeholders. UGRO Capital's Board of Directors has approved the acquisition of 'MyShubhLife' (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of Rs 45 Cr through a combination of 64:36 Equity Cash transaction, thereby making it a wholly owned subsidiary.
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