INSUBCONTINENT EXCLUSIVE:
This is seen buffering it against a likely slowdown that could see a rise in bad loans and put it in a position to lend when the downward
cycle turns.
The fundraising exercise is likely to be in the second half of the fiscal year, coinciding with the likely revival of demand
during the festival season and an impending resumption of investment
said Rajeev Jain, CEO of Bajaj Finance
financial institutions such as Axis Bank, IndusInd Bank and RBL Bank, which have lined up share sales in the next few months as they prepare
bolster the capital position ahead of an impending tightening of rules by the Reserve Bank of India (RBI) to strengthen the financial system
of bankruptcy.
Considered one of the better-run companies in the industry, Bajaj Finance has a leverage ratio of 6.6 times, the point at
which it typically initiates capital-raising plans
out many NBFCs because of their leverage and fears of likely defaults due to asset-liability mismatches
It had Rs 6,400 crore liquidity at the end of June in the form of cash and cash equivalent
cent growth in assets under management to Rs 1.3 lakh crore
The cost of funds has been stable at 8.47 per cent
The incremental borrowing over May and June has been lower than previously because of a rally in government securities and surplus liquidity
in the system.
While many NBFC stocks have crashed, investors are now looking at the sector positively and may be keen to buy shares where
The general belief is that the economy will start growing again
Financial institutions will require significant amounts for the credit offtake
debt funds with some selling bonds overseas
Offshore fundraising could top the record $49 billion touched in 2014.
Companies have raised $21.64 billion through foreign currency bonds
and loans so far this calendar year until July 11, according to data from Dealogic, a global analytics company
India Inc raised $27.1 billion in 2018 for both capital expenditure and refinancing