Piramal Retail Finance on Thursday said it aims to focus on scale, and become one of the top five retail non-bank lenders in five years, after the acquisition of mortgage lender DHFL and entering more products which ups the cross-sell opportunities. The legal and regulatory process for the acquisition of DHFL, bought through a bidding process, is going faster than expected, but a timeline cannot be given by when it will be over, its chief executive Jairam Sridharan told reporters here. It can be noted that the NBFCs space is highly competitive, and despite the reverses witnessed over the last three years, keeps witnessing newer entrants like the entry of deep-pocketed Godrejs and Poonawalas recently.
Small businesses-focused non-banking lender Kinara Capital has secured USD 10 million from IndusInd Bank with 100 per cent guarantee from the US International Development Finance Corporation. The Bengaluru-based NBFC, which has so far disbursed Rs 2,000 crore collateral-free small business loans to over to over 56,000 customers since inception, said it will use the money for on-lending to small businesses over the next five years. It said the latest debt funding is part of a debt and equity round of Rs 100 crore, with equity contribution coming from existing investors Gaja Capital, Gawa Capital, Michael and Susan Dell Foundation and Patamar Capital. Kinara lends to MSMEs across manufacturing, trading and services sectors, Hardika Shah, founder and chief executive said.
However, for its rated microfinance players, collections are yet to reach the pre-moratorium levels. In March last year, the Reserve Bank of India (RBI) had announced moratorium on repayment of term loans in order to provide relief to borrowers impacted by the COVID-19 related disruptions. Initially, the moratorium was allowed till May 31 but was later extended till August 31. The agency in a report said the rebound in collections of retail loan pools originated largely by non-bank finance companies and housing finance players has been augmented by the focused recovery efforts, increased use of advanced digital platforms/payment gateways by borrowers.
Read more about Arohan Financial files paperwork for Rs 1,800 cr initial public offering on Business Standard. Arohan Financial Services, a non-banking financial company, has filed draft papers with markets regulator SEBI for its proposed initial public offer (IPO).As per market sources, the Kolkata-based company plans to raise between Rs 1,750 crore and Rs
Read more about RBI tightening oversight of big NBFCs to avoid systemic spillovers: Moody s on Business Standard. India s risk-based internal audit requirement for non-banking finance companies is credit positive, Moody s Investors Service said