NBFCs are scurrying around for funds to cope with falling market valuations, asset-liability mismatches and rising delinquencies.
Dewan Housing Finance is going the IL&FS way or will be eventually sold if the problem is not fixed expeditiously,” says a CEO of a Mumbai-based nonbanking finance company or NBFC. The company has been struggling with asset-liability mismatches. So far, it has taken a decision to divest two group businesses (education loan and affordable housing finance companies), sold a part of its assets and claims to have repaid over 30,000 crore to creditors, including fixed deposit holders. But the mismatches refuse to go away. It desperately needs to raise longer-term funds, ensure faster sell-down of loans to builders and bring strategic investors. Any delay will push the company, which has a bank loan exposure of close to 40,000 crore, in the danger zone. The recent credit rating downgrade has already closed the fixed deposit window.
Another NBFC, Reliance Capital, with interest in a host of financial services, including insurance, is facing repayment issues with two of its financial services arms — home finance and commercial finance units. This Anil Ambani-owned company has already decided to sell its non-core investments in media and entertainment, private equity, radio, etc. This week, it decided to sell the entire stake in the mutual fund business. Another fast-growing NBFC, Indiabulls Housing Finance Ltd, has also come under pressure due to its risky large ticket commercial real estate and loan against property portfolio. The company claimed to have raised 50,000 crore in the last six months to improve its liquidity and liability profile. Luckily, Indiabulls Finance has got a prize catch in terms of the proposed merger with private sector Lakshmi Vilas Bank.
Diese Geschichte stammt aus der June 16, 2019-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der June 16, 2019-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS