Breaking News
1. US strikes Iran’s nuclear sites: Vice President JD Vance says war is with weapons programme, not people      2. '2,200km Away': Israel strikes Khorramshahr missile storage facilities in Iran for first time      3. "Why Wouldn't There Be Regime Change?" Trump's 'MIGA' Message For Iran      4. Iran moves to block Strait of Hormuz: What this will mean for India, Tehran, world, in 4 points      5. Satellite Images Question Trump's Claim Iran's Atomic Sites Destroyed      6. Netanyahu's First Remark After US Bombs Iran Nuclear Sites      7. Operation Sindhu: Nepal thanks India for Iran evacuation      8. Israel kills three Iranian military chiefs, hits nuclear sites in fresh air strikes.      9. US Bombers Flew 37 Hours Non-Stop, Refuelled Mid-Air To Hit Iran Nuclear Sites      10. Iranians killed, UN warns of refugee crisis; Tel Aviv strikes Isfahan nuclear plant for 2nd time      11. Provided food, shelter': 2 held for harbouring Pahalgam attack terrorists; disclose 3 were Pak LeT men      12. Iran, Israel Launch Fresh Attacks As Tehran Rules Out Nuclear Talks      13. Israel-Iran war: Donald Trump counters Tulsi Gabbard on Iran's nuclear programme; says 'my intelligence community was wrong'      14. Pak nominates Trump for Nobel Prize for 'pivotal leadership' in truce with India      15. Trump indicates he’s disinclined to restrain Israel ‘when it’s winning’ against Iran      16. PM Modi leads 11th International Yoga Day celebrations from Visakhapatnam      17. Missile strike on hospital to calls for Khamenei's elimination      18. ‘Saw missiles and drones’: Indian students evacuated from Iran arrive in Delhi, hail support from embassy      19. Air India warned for flying Airbus planes with unchecked escape slides      20. Donald Trump to decide on US role in Iran-Israel conflict within two weeks, says White House     

Banking on Progress: NBFCs Report Exceptional Q2 Gains Amid Robust Advances

  • Posted on November 9, 2023
  • Marketplace
  • By Arijit Dutta
  • 297 Views

In the realm of financial services, the second quarter of 2023 has unveiled remarkable growth as banks' advances to Non-Banking Financial Companies (NBFCs) continued their robust upward trajectory. The credit exposure of these banks to NBFCs reached a substantial Rs 14.2 lakh crore in the September 2023 quarter, marking a significant 26.3 percent year-on-year increase.

Banking on Progress: NBFCs Report Exceptional Q2 Gains Amid Robust Advances Image Source -www.poonawallafincorp.com

In the realm of financial services, the second quarter of 2023 has unveiled remarkable growth as banks' advances to Non-Banking Financial Companies (NBFCs) continued their robust upward trajectory. The credit exposure of these banks to NBFCs reached a substantial Rs 14.2 lakh crore in the September 2023 quarter, marking a significant 26.3 percent year-on-year increase.

This noteworthy expansion in credit exposure serves as a testament to the thriving progress observed in NBFCs in the post-pandemic era. Moreover, the proportion of NBFC exposure relative to aggregate credit has risen from 8.9 percent in the September 2022 quarter to 9.4 percent in September 2023.

As banks consistently extend their credit to NBFCs over the past five years, a prominent financial services player, UY Fincorp, has reported an astounding 90 percent surge in net sales during the second quarter of the current financial year. Net sales have soared to Rs 29.10 crore, a remarkable increase from Rs 15.28 crore in the September 2022 quarter.

Notably, UY Fincorp's quarterly net profit has skyrocketed to Rs 51.17 crore, marking a staggering growth of more than 1500 percent from the previous financial year's corresponding quarter, which recorded Rs 3.05 crore. EBITDA has also seen a sharp increase, reaching Rs 69.02 crore.

Also Read: Ethics Panel Urges Lok Sabha To Expel Mahua Moitra Amid CBI Probe

In line with these impressive financial results, UY Fincorp's shares exhibited robust performance, closing in the green with a three percent gain at Rs 25.85 on BSE, as reported by exchange data. Over the past year, the stock has witnessed a remarkable increase of 112.93 percent.

NBFCs, vital components of the financial lending sector, are regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). They play a significant role in the economic landscape by offering crucial credit support to micro, small, and medium enterprises (MSMEs).

Author
No Image
Author
Arijit Dutta

You May Also Like