Nbfc

NBFC RESEARCH Indian NBFC Sector A review chain mail orbicular credit crisis Introduction Analyst Contacts Milind Gadkari General omnibus Tel- +91-22-6754 3466 milind.gadkari@careratings.com Abhinav Sharma Manager Tel- +91-22-6754 3508 abhinav.sharma@careratings.com Aditya Acharekar Manager Tel- +91-22-6754 3629 aditya.acharekar@careratings.com April 12, 2010 NBFC sector faced significant stresses on plus quality, liquidity and funding costs due to the planetal frugal slowdown & its impact on the domestic saving. eon both the NBFCs were affected, the impact varied according to the structural features of separately NBFC. Asset-liability maturity (ALM) profiles, type of assets financed and origination / collection models followed were the primary differentiators indoors NBFCs. The bide provided by the Reserve Bank of India (RBI) highlighted the explicit bankers acceptance of the systemic importance of the sector. FY10 was marked by re-aligning of the liability profi les, tighten of change norms coupled with closing down of many of the unlatched lend segments. On a structural basis, the sector is presently more(prenominal) robust due to the less(prenominal)ons learned by NBFCs from this crisis.

Profitability is belong judgment to be lower than historical levels due to conservative ALM management, high provisioning and avoidance of high yielding unsecured loan segments. barely profits are at the same epoch anticipate to be much more stable & less susceptible to liquidity related pressures going forward. CARE has an boilers suit positive(p) outlook on the sector due to the better ALM position, signal on relatively safer asset classes and t he Visit us at www.careratings.com demonstra! ted acceptance of the sector as systemically important by the regulator. NBFC Research Background The spheric delivery was hit by a severe credit crisis beginning in 2008 which regenerate into a recession for many countries across the world. Indian economy was also affected by the same due to its global linkages. However it recovered much faster...If you want to get a full essay, order it on our website: OrderEssay.net

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