The Reserve Bank of India (RBI) has revoked the Certificate of Registration (CoR) of 150 Non-Banking Financial Companies (NBFCs), with the largest share of cancellations involving firms based in Delhi and West Bengal, according to a central bank statement released on Thursday. A review of the RBI’s list found that nearly 67 affected NBFCs were registered in Delhi, while around 75 were based in West Bengal, mainly concentrated in Kolkata and surrounding areas. "The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies," the RBI said in its press release.<h3>Cancellations of NBFCs from different states</h3>The cancellations cover several small and medium-sized finance and investment firms involved in activities such as lending, leasing, investments, and other related financial services. Companies from Telangana, Karnataka, Madhya Pradesh, Bihar, and Haryana were also among those impacted. The RBI further said, "As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934." NBFCs are financial institutions that offer loans, investment products, and other banking-like services but operate without a banking licence. They are governed by the RBI under the RBI Act. With the cancellation of their registration, these entities are no longer permitted to function as NBFCs or carry out financial activities regulated by the central bank.&nbsp;Also read: <a href="https://www.wionews.com/world/nvidia-h200-china-ai-chip-sale-blocked-1778749708827">Why China blocked Nvidia H200 AI chip sales despite US approval and Trump’s push</a>

NBFCs are financial institutions that are governed by the RBI under the RBI Act. These institutions offer loans, investment products, and other banking-like services but operate without a banking licence. 

The Reserve Bank of India (RBI) has revoked the Certificate of Registration (CoR) of 150 Non-Banking Financial Companies (NBFCs), with the largest share of cancellations involving firms based in Delhi and West Bengal, according to a central bank statement released on Thursday. A review of the RBI’s list found that nearly 67 affected NBFCs were registered in Delhi, while around 75 were based in West Bengal, mainly concentrated in Kolkata and surrounding areas. "The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies," the RBI said in its press release. Cancellations of NBFCs from different states The cancellations cover several small and medium-sized finance and investment firms involved in activities such as lending, leasing, investments, and other related financial services. Companies from Telangana, Karnataka, Madhya Pradesh, Bihar, and Haryana were also among those impacted. The RBI further said, "As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934." NBFCs are financial institutions that offer loans, investment products, and other banking-like services but operate without a banking licence. They are governed by the RBI under the RBI Act. With the cancellation of their registration, these entities are no longer permitted to function as NBFCs or carry out financial activities regulated by the central bank. Also read: Why China blocked Nvidia H200 AI chip sales despite US approval and Trump’s push

NBFCs are financial institutions that are governed by the RBI under the RBI Act. These institutions offer loans, investment products, and other banking-like services but operate without a banking licence.&nbsp;

RBI revokes registration of 150 NBFCs across country, Delhi and Bengal hit hardest

Northern Arc, a prominent non-bank lender, has announced its ambitious plan to raise Rs 1,000 crore through an alternate investment fund (AIF). This initiative is spearheaded by its subsidiary, Northern Arc Investment Managers (NAIM), and aims to bolster financial inclusion and stimulate economic growth across various sectors as detailed in a report by the Press Trust of India.

Investment strategy focused on growth<o:p></o:p>

The report further stated that, the newly launched "Finserv Fund" is classified as a category II AIF, with the potential to raise an additional Rs 500 crore via a green shoe option. According to an official statement from the company, the fund will strategically allocate resources to six key sectors: small businesses, affordable housing, vehicle finance, agriculture finance, microfinance, and consumer finance. 

NAIM's Chief Executive Bhavdeep Bhatt highlighted that the AIF will target investments in approximately 45 to 55 entities over a four-year cycle. The fund aims to deliver an internal rate of return ranging between 14 per cent and 14.50 per cent for its investors. This approach not only focuses on higher risk-adjusted returns but also ensures regular cash flows for investors by investing in a diversified pool of debt securities from financial institutions.

Robust asset management framework<o:p></o:p>

As of June 30, 2024, Northern Arc boasts assets under management amounting to Rs 14,639 crore through its balance sheet and active AIF funds. The company has achieved notable success in fund exits, with returns ranging from 11.72 per cent to 15.77 per cent post-expense pre-tax. 

Northern Arc's Managing Director and Chief Executive Ashish Mehrotra emphasized the importance of their extensive network in managing this portfolio effectively. The company collaborates with 328 originator partners, 50 retail lending partners, and over 1,000 investor partners. This robust framework is expected to enhance the fund's performance while supporting its mission of increasing financial access across diverse sectors.

Northern Arc's initiative comes at a crucial time when financial inclusion remains a significant challenge in India. By targeting sectors that are often underserved, such as small businesses and affordable housing, the Finserv Fund aims to bridge the gap in access to finance for millions of individuals and enterprises.

The company's strategic focus aligns with broader economic goals aimed at fostering growth and stability within the financial ecosystem. As Northern Arc embarks on this fundraising journey, it seeks not only to generate attractive returns for investors but also to contribute positively to the economy by empowering various sectors that drive growth.

Hence, Northern Arc's launch of the Finserv Fund marks a significant step towards enhancing financial inclusion while offering lucrative investment opportunities. With a clear focus on diverse sectors and a strong asset management strategy, the company is poised to make a meaningful impact in the evolving landscape of India's financial services industry.

Northern Arc, a prominent non-bank lender, has announced its ambitious plan to raise Rs 1,000 crore through an alternate investment fund (AIF). This initiative is spearheaded by its subsidiary, Northern Arc Investment Managers (NAIM), and aims to bolster financial inclusion and stimulate economic growth across various sectors as detailed in a report by the Press Trust of India.

Northern Arc, a prominent non-bank lender, has announced its ambitious plan to raise Rs 1,000 crore through an alternate investment fund (AIF). This initiative is spearheaded by its subsidiary, Northern Arc Investment Managers (NAIM), and aims to bolster financial inclusion and stimulate economic growth across various sectors as detailed in a report by the Press Trust of India. Investment strategy focused on growth The report further stated that, the newly launched "Finserv Fund" is classified as a category II AIF, with the potential to raise an additional Rs 500 crore via a green shoe option. According to an official statement from the company, the fund will strategically allocate resources to six key sectors: small businesses, affordable housing, vehicle finance, agriculture finance, microfinance, and consumer finance. NAIM's Chief Executive Bhavdeep Bhatt highlighted that the AIF will target investments in approximately 45 to 55 entities over a four-year cycle. The fund aims to deliver an internal rate of return ranging between 14 per cent and 14.50 per cent for its investors. This approach not only focuses on higher risk-adjusted returns but also ensures regular cash flows for investors by investing in a diversified pool of debt securities from financial institutions. Robust asset management framework As of June 30, 2024, Northern Arc boasts assets under management amounting to Rs 14,639 crore through its balance sheet and active AIF funds. The company has achieved notable success in fund exits, with returns ranging from 11.72 per cent to 15.77 per cent post-expense pre-tax. Northern Arc's Managing Director and Chief Executive Ashish Mehrotra emphasized the importance of their extensive network in managing this portfolio effectively. The company collaborates with 328 originator partners, 50 retail lending partners, and over 1,000 investor partners. This robust framework is expected to enhance the fund's performance while supporting its mission of increasing financial access across diverse sectors. Northern Arc's initiative comes at a crucial time when financial inclusion remains a significant challenge in India. By targeting sectors that are often underserved, such as small businesses and affordable housing, the Finserv Fund aims to bridge the gap in access to finance for millions of individuals and enterprises. The company's strategic focus aligns with broader economic goals aimed at fostering growth and stability within the financial ecosystem. As Northern Arc embarks on this fundraising journey, it seeks not only to generate attractive returns for investors but also to contribute positively to the economy by empowering various sectors that drive growth. Hence, Northern Arc's launch of the Finserv Fund marks a significant step towards enhancing financial inclusion while offering lucrative investment opportunities. With a clear focus on diverse sectors and a strong asset management strategy, the company is poised to make a meaningful impact in the evolving landscape of India's financial services industry.

Northern Arc targets Rs 1,000 crore through innovative alternate investment fund

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, <a href="https://www.wionews.com/india-news/global-economy-seems-to-be-moving-into-new-unsettling-phase-rbi-governor-shaktikanta-das-238764">Governor Shaktikanta Das</a> said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy.

Since February, the RBI has cut the repo rate by 110 basis points (bps), but most Indian banks - which rely on an opaque rate-setting mechanism, have not come close to the following suit.

The State Bank of India (SBI), the largest lender by assets, has cut its benchmark lending rate by 30 bps.

Commercial banks cite high deposit rates for their inability to cut loan ones.&nbsp;

Marginal reductions restrict how much borrowers benefit from the repo cuts.

"Today, the economy requires a certain amount of push not just from the monetary policy but also from its transmission," Das said. "I think the time has now come to formalise this linking of new loans to external benchmarks like the repo rate."

"We'd kept the external benchmarks in abeyance earlier because we wanted to see how the market evolves," the governor told a banking conference in Mumbai.

SBI, the largest lender by assets, earlier this year linked its savings bank deposits and short-term loans to the repo rate, becoming the first Indian bank to do so.

"I expect more initiatives and this process to become faster," Das said, adding that the RBI has been in talks with banks ensure "faster and greater" adjustment of rates.

Das also said the central bank was in talks with non-bank housing finance companies (NBFCs) to ensure that none collapse amid a debt crisis in the sector that has contributed to a broader economic slowdown.

The RBI is closely monitoring the 50 biggest NBFCs and housing finance companies, including their capital adequacy, stability and cash flows, Das said.

The collapse of Infrastructure Leasing &amp; Financial Services (IL&amp;FS) late last year created contagion fears that hit many other Indian NBFCs and dented credit growth, which has severely stung the auto and real estate sectors.

However, Das said there was no proposal at the moment for any asset quality review for NBFCs. 
&nbsp;

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy.

The Reserve Bank of India (RBI) is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy. Since February, the RBI has cut the repo rate by 110 basis points (bps), but most Indian banks - which rely on an opaque rate-setting mechanism, have not come close to the following suit. The State Bank of India (SBI), the largest lender by assets, has cut its benchmark lending rate by 30 bps. Commercial banks cite high deposit rates for their inability to cut loan ones. Marginal reductions restrict how much borrowers benefit from the repo cuts. "Today, the economy requires a certain amount of push not just from the monetary policy but also from its transmission," Das said. "I think the time has now come to formalise this linking of new loans to external benchmarks like the repo rate." "We'd kept the external benchmarks in abeyance earlier because we wanted to see how the market evolves," the governor told a banking conference in Mumbai. SBI, the largest lender by assets, earlier this year linked its savings bank deposits and short-term loans to the repo rate, becoming the first Indian bank to do so. "I expect more initiatives and this process to become faster," Das said, adding that the RBI has been in talks with banks ensure "faster and greater" adjustment of rates. Das also said the central bank was in talks with non-bank housing finance companies (NBFCs) to ensure that none collapse amid a debt crisis in the sector that has contributed to a broader economic slowdown. The RBI is closely monitoring the 50 biggest NBFCs and housing finance companies, including their capital adequacy, stability and cash flows, Das said. The collapse of Infrastructure Leasing & Financial Services (IL&FS) late last year created contagion fears that hit many other Indian NBFCs and dented credit growth, which has severely stung the auto and real estate sectors. However, Das said there was no proposal at the moment for any asset quality review for NBFCs.

Reserve Bank of India weighs linking some new bank loans to the policy rate

<a href="http://www.wionews.com/india-news/government-not-seeking-rbi-reserves-to-meet-fiscal-deficit-arun-jaitley-187546">Reserve Bank </a>Governor Shaktikanta Das Wednesday said he will meet representatives of MSMEs and non-banking financial companies (NBFC) next week.

A day after the RBI announced a one-time loan restructuring scheme for the MSME sector, Das in a tweet said, "Will hold meetings with MSME associations and representatives of NBFCs next week."

The RBI's board in its crucial meeting held on November 19, 2018, had advised the central bank examine a scheme for the restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability.

The liquidity problem in the non-banking financial companies and housing finance companies came to the fore after series of loan defaults by IL&amp;FS, one of the largest NBFCs in the country.

The government has superseded the board of IL&amp;FS, and the debt-ridden company has already started the process to monetise its several assets.

RBI Governer Shaktikanta Das said in a tweet, 'Will hold meetings with MSME associations and representatives of NBFCs next week.'

Reserve Bank Governor Shaktikanta Das Wednesday said he will meet representatives of MSMEs and non-banking financial companies (NBFC) next week. A day after the RBI announced a one-time loan restructuring scheme for the MSME sector, Das in a tweet said, "Will hold meetings with MSME associations and representatives of NBFCs next week." The RBI's board in its crucial meeting held on November 19, 2018, had advised the central bank examine a scheme for the restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 25 crore, subject to such conditions as are necessary for ensuring financial stability. The liquidity problem in the non-banking financial companies and housing finance companies came to the fore after series of loan defaults by IL&FS, one of the largest NBFCs in the country. The government has superseded the board of IL&FS, and the debt-ridden company has already started the process to monetise its several assets.

RBI Governer Shaktikanta Das to meet MSME, NBFC representatives next week

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

<a href="http://www.wionews.com/business-economy/inflation-in-2018-data-shows-price-rise-within-comfort-zone-but-farmers-187302">Attractive real yields (net of inflation)</a>, growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'.

On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending.

"In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said.

The report also said<a href="http://www.wionews.com/business-economy/rbi-exploring-mobile-phone-based-solution-to-help-visually-impaired-identify-banknotes-187305"> the RBI</a> is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent.

"However, if inflation continues to undershoot RBI's target, there is a &nbsp;possibility of a rate cut later in 2019," it noted.

On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018."

"As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India.

Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment.

"Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said.

It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty".

The report said the macro environment is still supportive for equities.

Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said.

"In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report.

However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered. Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'. On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending. "In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said. The report also said the RBI is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent. "However, if inflation continues to undershoot RBI's target, there is a possibility of a rate cut later in 2019," it noted. On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018." "As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India. Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment. "Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said. It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty". The report said the macro environment is still supportive for equities. Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said. "In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report. However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

US dollar strength, oil prices, general elections to determine rupee direction in near term: Report

The BSE Sensex tumbled about 280 points to close below the 37,000-mark Friday after investors were jolted by an over 1,000-point plunge in afternoon trade.

The 30-share benchmark, which opened on a strong footing, suddenly tanked 1,127.58 points, or 3.03 per cent, to hit a low of 35,993.64 at 1309 hours, before staging an equally sharp recovery.

The fall came on the back of a massive selloff in NBFCs, led by DHFL which skidded over 50 per cent on fears of a liquidity crisis.

The Sensex finally ended lower by 279.62 points, or 0.75 per cent, at 36,841.60. This is its lowest closing since July 25, when it had finished at 36,858.23.

Yes Bank was the worst performer on the index, losing a whopping 28.71 per cent. The Reserve Bank Wednesday curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.

The broader Nifty too suffered a mid-session plunge and ended at 11,143.10, down 91.25 points.

The indices closed with losses for the third straight week. The Sensex lost a hefty 1,249.04 points, or 3.28 per cent, while the NSE Nifty fell 372.10 points, or 3.23 per cent, during the week.

Foreign portfolio investors (FPIs) remained net sellers and offloaded equities worth Rs 2,184.55 crore while domestic institutional investors (DIIs) made purchases worth a net Rs 1,201.30 crore Wednesday, provisional data showed.&nbsp;

The BSE Sensex tumbled about 280 points to close below the 37,000-mark Friday after investors were jolted by an over 1,000-point plunge in afternoon trade. The 30-share benchmark, which opened on a strong footing, suddenly tanked 1,127.

The BSE Sensex tumbled about 280 points to close below the 37,000-mark Friday after investors were jolted by an over 1,000-point plunge in afternoon trade. The 30-share benchmark, which opened on a strong footing, suddenly tanked 1,127.58 points, or 3.03 per cent, to hit a low of 35,993.64 at 1309 hours, before staging an equally sharp recovery. The fall came on the back of a massive selloff in NBFCs, led by DHFL which skidded over 50 per cent on fears of a liquidity crisis. The Sensex finally ended lower by 279.62 points, or 0.75 per cent, at 36,841.60. This is its lowest closing since July 25, when it had finished at 36,858.23. Yes Bank was the worst performer on the index, losing a whopping 28.71 per cent. The Reserve Bank Wednesday curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019. The broader Nifty too suffered a mid-session plunge and ended at 11,143.10, down 91.25 points. The indices closed with losses for the third straight week. The Sensex lost a hefty 1,249.04 points, or 3.28 per cent, while the NSE Nifty fell 372.10 points, or 3.23 per cent, during the week. Foreign portfolio investors (FPIs) remained net sellers and offloaded equities worth Rs 2,184.55 crore while domestic institutional investors (DIIs) made purchases worth a net Rs 1,201.30 crore Wednesday, provisional data showed.

Sensex ends in red after 1,000-point flash crash

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