By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Latest World News UpdateLatest World News UpdateLatest World News Update
  • Home
  • Business
  • National
  • Entertainment
  • Sports
  • Health
  • Science
  • Tech
  • World
  • Marathi
  • Hindi
  • Gujarati
  • Videos
  • Press Release
    • Press Release
    • Press Release Distribution Packages
  • Legal Talk
Reading: NBFC sector strengthens with RBIs positive stance and rate cut support for growth: Jefferies – World News Network
Share
Notification Show More
Font ResizerAa
Latest World News UpdateLatest World News Update
Font ResizerAa
  • Home
  • Business
  • National
  • Entertainment
  • Sports
  • Health
  • Science
  • Tech
  • World
  • Marathi
  • Hindi
  • Gujarati
  • Videos
  • Press Release
    • Press Release
    • Press Release Distribution Packages
  • Legal Talk
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Latest World News Update > Blog > Business > NBFC sector strengthens with RBIs positive stance and rate cut support for growth: Jefferies – World News Network
Business

NBFC sector strengthens with RBIs positive stance and rate cut support for growth: Jefferies – World News Network

worldnewsnetwork
Last updated: March 15, 2025 12:00 am
worldnewsnetwork 4 months ago
Share
SHARE

New Delhi [India], March 15 (ANI): The fundamentals of Non-Banking Financial Companies (NBFCs) are showing signs of improvement as macroeconomic challenges ease and the Reserve Bank of India (RBI) adopts a more supportive stance, according to Jefferies.
With stabilizing asset quality, improving liquidity, and emerging rate tailwinds, the sector is poised for steady growth. The overall macroeconomic environment is improving with increased government spending and RBI’s measures to ease liquidity constraints.
The central bank’s recent risk weight reduction on bank lending to NBFCs signals a constructive approach, which should enhance funding access, particularly for smaller NBFCs.
Additionally, a recent 25-basis-point interest rate cut, along with potential future cuts, is expected to support net interest margins (NIMs) across the sector.
The asset quality (AQ) of NBFCs is showing stabilization across key segments. Collections have improved in recent months, and while gross non-performing assets (GNPA) may rise slightly in Q1 FY26, the increase is expected to be lower than last year.
However, the microfinance institution (MFI) segment remains under stress, particularly in Karnataka, where a microfinance ordinance impacted collection efficiency.
Despite some improvements in other states, the transition to MFIN 2.0 regulations in April 2025 could add further pressure to the MFI segment.
However, spillover effects from unsecured MFI loans to secured loan products remain limited. NBFC exposure to MFI overlaps is highest in gold loans (9 per cent), small-ticket loans like micro LAP/PL (6-7 per cent), affordable housing (4-5 per cent), and two-wheeler loans (2 per cent), while commercial vehicle (CV) loans remain largely unaffected.
The vehicle financing sector is experiencing mixed trends. Demand for light commercial vehicles (LCVs) is improving, while medium and heavy commercial vehicles (MHCVs) continue to face muted demand and rising competition.
The affordable housing finance sector (AHFCs) is witnessing steady disbursements, though some pricing pressure is emerging due to aggressive competition from larger players.
Post-RBI’s 25bps rate cut, PSU banks have lowered home loan rates to 8.1-8.2 per cent, but private banks have yet to follow suit.
Larger housing finance companies (HFCs) with fixed liabilities may experience NIM pressure, making AHFCs a preferred choice due to their better pricing power. Among AHFCs, Home First Finance remains a top pick.
While NBFC stocks have declined 3-41 per cent from their six-month peaks, top large retail and auto-focused NBFCs have outperformed the broader market. (ANI)

Contents
WORLD MEDIA NETWORKPRESS RELEASE DISTRIBUTIONPress releases distribution in 166 countriesPress releases in all languagesPress releases in Indian LanguagesIndia PackagesEurope PackagesAsia PackagesMiddle East & Africa PackagesSouth America PackagesUSA & Canada PackagesOceania PackagesCis Countries PackagesWorld Packages

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News

sponsored by

WORLD MEDIA NETWORK


PRESS RELEASE DISTRIBUTION

Press releases distribution in 166 countries

EUROPE UK, INDIA, MIDDLE EAST, AFRICA, FRANCE, NETHERLANDS, BELGIUM, ITALY, SPAIN, GERMANY, AUSTRIA, SWITZERLAND, SOUTHEAST ASIA, JAPAN, SOUTH KOREA, GREATER CHINA, VIETNAM, THAILAND, INDONESIA, MALAYSIA, SOUTH AMERICA, RUSSIA, CIS COUNTRIES, AUSTRALIA, NEW ZEALAND AND MORE

Press releases in all languages

ENGLISH, GERMAN, DUTCH, FRENCH, PORTUGUESE, ARABIC, JAPANESE, and KOREAN CHINESE, VIETNAMESE, INDONESIAN, THAI, MALAY, RUSSIAN. ITALIAN, SPANISH AND AFRICAN LANGUAGES

Press releases in Indian Languages

HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages

Email - support@worldmedianetwork.uk
Website - worldmedianetwork.uk

India Packages

Read More

Europe Packages

Read More

Asia Packages

Read More

Middle East & Africa Packages

Read More

South America Packages

Read More

USA & Canada Packages

Read More

Oceania Packages

Read More

Cis Countries Packages

Read More

World Packages

Read More
sponsored by

You Might Also Like

India should avoid hasty trade deal under US pressure, as it may not survive next US political shift: GTRI – World News Network

India’s growth cycle bottoming out; interest rate, decline in crude prices & normal monsoon support growth ahead: HSBC – World News Network

Nifty in red, Sensex loses 330 pts in opening amid valuation concerns of Indian markets – World News Network

Trade deficit likely narrowed further in June amid cooling oil prices, sluggish gold imports: Report – World News Network

IIFL Home Finance gets USD100 million financing from AIIB – World News Network

Share This Article
Facebook Twitter Email Print
Previous Article Had productive discussions with Putin, war in Ukraine could end: Trump – World News Network
Next Article “Nobody was perfect when they started”: Sonu Sood asks people to be kind to debutants as Ibrahim-Khushi get trolled for ‘Nadaaniyan’ – World News Network
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe
4.4kFollowersFollow
- Advertisement -

Latest News

Australian seamer Scott Boland achieves best bowling average in Tests since 1900 – World News Network
Sports 6 hours ago
Chelsea’s Cole Palmer named best player in inaugural FIFA Club World Cup 2025 – World News Network
Sports 6 hours ago
Uttar Pradesh: Main accused arrested in religious conversion case in Prayagraj – World News Network
National 6 hours ago
“President Droupadi Murmu to attend 5th convocation of AIIMS Bhubaneswar today,” says AIIMS Executive Director – World News Network
National 6 hours ago

Sports

“We wanted 250-plus”: England batting coach on ideal target for India – World News Network
Sports
Shubman Gill shatters Rahul Dravid’s 23-year-old record despite underwhelming show at Lord’s – World News Network
Sports

Popular Category

  • Business
  • Entertainment
  • Health
  • National
  • Videos
  • Gujarati

Popular Category

  • Hindi
  • Lifestyle
  • Marathi
  • National
  • Science
  • Sports
  • Tech
  • World

Entertainment

“I admire him greatly”: James Gunn on Bradley Cooper’s ‘Superman’ cameo – World News Network
Entertainment
Rian Johnson reveals “nothing really happened” with ‘Star Wars’ trilogy, says “was busy making murder mysteries” – World News Network
Entertainment
Copyright © 2023 World News Network. All Rights Reserved.
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?