Credit Fair Secures $5 Million from Symbiotics Investments backed by British International Investment
The bond was issued by Symbiotics Investments and subscribed to by British International Investment (BII)
NBFCs
Fitch Ratings Warns of Challenges Ahead for Non-Bank Financial Institutions in India
After reaching a peak of 18% in loan growth in the financial year ending March 2024 (FY24), sector growth is showing signs of moderation. Credit growth for NBFIs, excluding housing finance companies, has slowed to 6.6% between March and September 2024. This deceleration is partly attributed to the country’s softer economic conditions, resulting in Fitch’s downward revision of its FY25 GDP growth forecast to 6.4% from a previous 7.0%. However, the agency does not anticipate a prolonged economic downturn, maintaining its FY26 GDP growth estimate at 6.5%.
Indian NBFI Regulatory Actions Bring Governance to the Forefront, says Fitch ratings
Governance and compliance issues can greatly diminish customer and market confidence, potentially undermining funding and business activities. Severe non-compliance may result in stringent regulatory sanctions, which can negatively affect the issuer’s franchise strength and heighten the risk of default, especially if liquidity buffers are thin.
RBI cancels permits of Polytex India and Star Finserv citing rule violations
In the case of Polytex, the RBI said it has violated the violated RBI guidelines on code of conduct in outsourcing of financial services by outsourcing its core decision-making functions related to client sourcing, Know Your Customer (KYC) verification, credit appraisal, loan disbursal, loan recovery, follow up with borrowers and attending and resolving complaints from borrowers, the RBI said.