Despite their reach and profitability, not all nonbanking financial companies have sound business models. ❋ Sneha Shah (2011)
Recently, the RBI said that lending only to microfinance nonbanking financial companies will be considered priority sector. ❋ Sneha Shah (2011)
Mehta , director at Ernst and Young India, referring to the gap between what private-equity firms are willing to pay and what nonbanking financial companies' promoters want. ❋ Sneha Shah (2011)
Scaling up is an issue with nonbanking financial companies, as cost of funds is relatively expensive. ❋ Sneha Shah (2011)
Some private-equity firms are even joining hands to set up their own nonbanking financial companies: Ashmore Group Plc, Everstone Capital and the private-equity arm of Goldman Sachs are setting up Indostar Capital Finance Pvt. Ltd to lend to Indian firms. ❋ Sneha Shah (2011)
It helps that nonbanking financial companies themselves are on an equity-raising drive following the Reserve Bank of India's stipulation that they will need more capital reserves. ❋ Sneha Shah (2011)
Also, it will not be easy for nonbanking financial companies to reach the same level of distribution as easily as banks that have built this over a long time, said Avinash Gupta , head of financial advisory at DeloitteTouche Tohmatsu India Pvt. Ltd. ❋ Sneha Shah (2011)
We know the answer, because lots of bad loans originated with small banks, untainted by any significant nonbanking business, that then sold them to larger institutions. ❋ Unknown (2010)
The RBI also removed gold loans from the definition of priority-sector lending and restricted nonbanking financial companies from expanding overseas. ❋ Sneha Shah (2011)
Private-equity firms see these developments as positives that will instill discipline in a business not known for governance or transparency, and where some nonbanking financial companies are far more profitable than banks. ❋ Sneha Shah (2011)
Indian law limits any entity's investment in a bank to 5%, making nonbanking financial companies an attractive alternative. ❋ Sneha Shah (2011)
Munish Dayal of Baring said retail asset-backed nonbanking financial companies such Magma Fincorp Ltd., ShriramTransport Finance Co. Ltd., and Manappuram General Finance and Leasing Ltd. are more financially inclusive, catering to a population that doesn't have access to banks. ❋ Sneha Shah (2011)
Until recently, bank loans to nonbanking financial companies were considered priority-sector loans as long as the latter, in turn, loaned money to people in rural areas. ❋ Sneha Shah (2011)
According to private-equity firms, nonbanking financial companies will do well in India because banks haven't been able to meet the needs of all borrowers. ❋ Sneha Shah (2011)
Instead, he is seeking to increase Woori Finance's stake in the brokerage as part of the holding firm's broader efforts to boost nonbanking operations. ❋ Se Young Lee (2011)
Private-equity firms are chasing nonbanking financial companies even as India's banking regulator has signaled its determination to tighten its grip on the sector. ❋ Sneha Shah (2011)
A significant dilution or outright loss of its shares in Woori Investment could be a major blow for Woori Finance; the brokerage is the holding company's key nonbanking affiliate. ❋ Se Young Lee (2011)
Since January, private-equity firms have invested $200 million in six nonbanking financial companies, and more such deals are in the offing, fund managers say. ❋ Sneha Shah (2011)
"Out of the purview of priority sector, nonbanking financial companies are finding it difficult to raise money; at the same time the cost of funds has also gone up," said BCG's Saurabh Tripathi. ❋ Sneha Shah (2011)
