Mumbai: A working group constituted by the Reserve Bank Of India and headed by its former Deputy Governor Usha Thorat has recommended that NBFCs with assets of R1,000 crore and above should be inspected comprehensively on an annual basis with a stress test carried out to ascertain their vulnerability. An FE study reveals that out of 346 major NBFCs, only 35 NBFCs have assets of R1,000 crore and above as on March 31. Kishor P Ostwal, CMD,CNI Research said, “ NBFCs are allowed to set up banks and the risk involved in a bank for a systemic failure is very high. Therefore, RBI wants to regulate the major NBFCs.” Out of 35 NBFCs, Muthoot Finance, Manappuram Finance and Future Capital showed more than 100% growth on their assets during 2010-11 and are consistently doing better during last three years. The total assets of Manappuram Finance have increased by 209.8% to R7,578 crore during 2010-11 from the level of R2,446 crore during 2009-10.The Kerala based company's total gold loan disbursements rose to R18,057 crore during the year from R7,123 crore of previous year. It also posted a two-fold net profit growth to R283 crore for the financial year 2010-11. Similarly the assets of Muthoot Finance increased by 126.3% to R13,273 crore during 2010-11 from the level of R5,865 crore during 2009-10. It is the largest gold financing company in India in terms of loan portfolio. The company's gold loan outstanding increased by 114% to R15,728 crore during the year 2010-11 from R7,341 crore during 2009-10. The company registered a growth of 117% in its net profit to R494 crore for the financial year ended March 31, 2011. The assets of future capital increased by 176.1% to R3,304 crore during 2010-11 from the level of R1,196 crore during 2009-10. A downward trend in asset growth was seen in the case of JM Financial, Network 18 Media and Bajaj Finserv. The asset of Bajaj Finserv decreased by 9.1% to R1,390 crore during 2010-11 from the level of R1,529 crore during 2009-10.In 2010-11, there are 12 NBFCs which have more than R10,000 crore assets but in the previous year there were only eight. Four companies namely Dewan Housing, Muthoot Finance, M&M Financial and Sundaram Finance have entered in the list of R10,000-group during 2010-11. The lowest growth in assets was registered in the case of Can Fin Homes, Tata Inv, PNB Gilts, SKS Microfinance and Shriram Trans. The assets of Can Fin Homes increased only 3.5% to R2,214 crore during 2010-11. Top five NBFCs according to assets during 2010-11 are HDFC, Power Finance, REC, LIC Housing Finance and IDFC. Among these five, highest increase in assets was registered in the case of IDFC. The assets of IDFC has increased by 42% to R47,367 crore during 2010-11 from the level of R33,346 crore during 2009-10. Profit after tax (PAT) of the company increased by 26.1% from 1,013 crore in 2009-10 to R1,277 crore in 2010-11.In July 2010, IDFC got the infrastructure finance company status within the NBFC category from the RBI.
FE
No comments:
Post a Comment