ANI
22 Feb 2021, 22:55 GMT+10
Mumbai (Maharashtra) [India], Feb 22 (ANI): The trend of market share losses for non-banking finance companies (NBFCs) to banks is continuing in housing and private auto segments, Emkay Global Financial Services said on Monday.
This is largely due to lower interest rates and longer loan tenures by banks. Meanwhile, NBFCs continue to bet on the under-banked and new-to-credit segments to manage growth momentum while also focusing on specific product segments like used vehicle finance, affordable housing and low-ticket MSME loans.
Emkay said the recent discussions with various NBFCs management and industry experts point to a surge in credit demand across sectors and geographies. New housing loans especially in the affordable category, used vehicle loans and MSME loans are seeing significant momentum.
This is followed by autos and two-wheelers while the cautious stance stays regarding unsecured loans. Demand for medium and heavy commercial vehicles besides tractors is also witnessing initial signs of a quick rebound. The introduction of the scrappage policy is expected to accelerate used vehicle demand further.
Emkay said the Reserve Bank of India (RBI) increasing its vigilance over NBFCs and restricting dividend payouts will result in enhancing their governance structures and bringing more transparency. It will also lead to an improvement in the cost of funds and credit costs.
For banks, the shift toward marginal cost of funds-based landing rate (MCLR)-linked borrowing has also aided in trimming the cost of funds. (ANI)
Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationKolkata (West Bengal) [India], February 26 (ANI): The Central Bureau of Investigation (CBI) has conducted raids at multiple properties of ...
Jaipur (Rajasthan) [India], February 26 (ANI): Reacting to Rahul Gandhi's 'North-South' remark, Robert Vadra, businessman and son-in-law of Congress interim ...
Mumbai (Maharashtra) [India], February 26 (ANI): Mumbai Police deployed its personnel outside popular businessman Mukesh Ambani's house following explosive materials ...
Coimbatore (Tamil Nadu) [India], February 25 (ANI): Prime Minister Narendra Modi on Thursday said the government wants to bring a ...
Agra (Uttar Pradesh) [India], February 25 (ANI): US-based retailer Walmart on Thursday launched a new Vriddhi e-institute in Agra to ...
A Serbian court has sentenced a former mayor to four years in prison for ordering an arson attack on the ...
Tesla founder Elon Musk is no longer the richest person on earth after his stock portfolio tumbled 6 percent on ...
Goodyear Tire and Rubber Company's announcement that it would purchase rival Cooper Tire for $2.8 billion ensures Goodyear will double ...
Gurugram (Haryana) [India], February 26 (ANI/BusinessWire India): BMW Motorrad India has launched the new BMW R nineT and BMW R ...
The price of petrol could rise by as much as 66 cents per litre, and diesel 57 cents per litre ...
Tokyo [Japan], February 26 (ANI): Electric vehicle battery makers Contemporary Amperex Technology, LG Chem, Panasonic Corporation and SK Innovation, which ...
Mumbai (Maharashtra) [India], February 26 (ANI): A strong bear grip on bourses led frontline indices to drop by nearly 3 ...