RBI-NBFC: Impact of RBI rules, pace of NBFC loans increased; Tata Sons will have to launch IPO

New Delhi| Ever since RBI has implemented the Scale Based Regulations Framework i.e. SBR, non-banking financial companies i.e. NBFCs have been performing well. According to the report, the sector has increased lending by more than 10 per cent. According to the RBI report, the proportion of bad bad loans (NPAs) has decreased since the introduction of SBR in October 2022.

According to the report, NPAs ranged between 4.4 percent and 10.6 percent in December 2021. As of December 2023, it has gone from 2.4 percent to 6.3 percent. RBI said in a recently released bulletin, NBFCs need to be conscious of the rapidly evolving financial scenario, risk management and internal audit. However, these views are not of RBI, but of the authors of the bulletin.

RBI has placed 15 NBFCs as part of the Upper Layer under the SBR framework. These include LIC Housing, Bajaj Finance, Shriram Finance, Tata Sons, L&T Finance, Indiabulls Housing Finance, Piramal Capital and Housing Finance, Mahindra & Mahindra Financial Services, PNB Housing Finance, Aditya Birla Finance, HDB Financial Services, Bajaj Housing Finance and Tata Capital. Financial are the major names.

So far, except Tata Sons, other companies have started steps for listing from the upper layer list. However, Tata Sons is still trying to avoid listing. According to the rules, the company has to be listed by September next year. But it wants to avoid listing by repaying the loans and for many other reasons.