Last week, RBI had put curb on the IIFL gold loan business directing the company to cease and desist from sanctioning or disbursing gold loans. Further, it also directed JM Financial to cease and desist from doing any form of financing against shares and debentures. Amid the situation, here’s what FIDC said to NBFCs in its advisory:
Amid India’s growth roadmap towards a developed economy, the housing finance sector plays a pivotal role. There is a considerable demand for affordable housing even in the Tier 2 and 3 cities post-Covid, and growth of the real estate sector is bound to take centre stage. Manish Sheth, MD and CEO of JM FInancial Home Loans Limited talked to ETBFSI to discuss the developments happening in the housing sector, and the roadmap of the company.
Certain material supervisory concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default among other issues were cited by the RBI.
Notably, the trading in the stock has been restricted, and the shares of Reliance Capital last traded on February 26 when they declined 4.46% to Rs 11.79. RCL has said in a exchange filing that the National Company Law Tribunal (NCLT) in its approved resolution plan for the firm is contemplating delisting of existing equity shares from the exchanges. Here are the details:
DPI addresses multiple issues which hinder access to affordable credit for MSMEs. It provides a framework for consent based sharing of KYC and digital financial data. RBI has also ensured responsible growth of the sector through policy interventions such as introduction of the digital lending guidelines, creating a fintech repository to percolate best practices across the sector.
The purpose of this Code of Conduct is to ensure that the members take effective measures aimed at compliance with regulatory requirements and maintain standards of fair business conduct. Here are the key highlights including its take on risk management, and engagement of recovery agents:
Ambani climbed to the 12th spot on the Bloomberg Billionaires Index as his wealth surged over $2.76 billion in a day. He has also overtaken billionaire industrialist Gautam Adani as Asia’s richest person. Jio Financial Services observed a gain of over 4.6%, closing at Rs 251.50 on Thursday, with a market capitalisation close to Rs 1.6 lakh crore on the Bombay Stock Exchange.
Delhi is most optimistic where a whopping 87% of surveyed MSMEs anticipate a surge in consumer spending. Bangalore and Pune follow suit with impressive levels of confidence, it said. The report highlighted the top three factors for consideration while choosing a loan provider: quick disbursals, digitally enabled loan journey, and deal terms.
REC Limited hosted a conference on ‘Financing for Roads and Highways’ to bring all key stakeholders under one roof and to discuss financing aspects of the sector. The conference featured presentations from REC and the Road and Highways agencies, highlighting their unique perspectives on financing challenges and opportunities within the sector.
Analysts believed that the core growth drivers including activity levels, CV utilizations, small business credit demand remains steady, but growth in unsecured personal loan and credit cards segment should moderate as lenders curtail lending to this segment due to rising risks, higher risk weight and RBI's nudge to lenders to exercise caution towards this segment.
From an asset quality perspective, holding timely auctions has kept the credit cost, the apt gauge of gold-loan asset quality, in check, at 0.2-0.4% historically. Growth for gold-loan NBFCs remains highly influenced by change in the prices of the precious metal. In fiscal 2023, gold prices rose nearly 10%, with loan books rising in tandem, supported by bigger ticket sizes.
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