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Financial Foresights

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Role of NBFCs in promoting


inclusive growth

FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY


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Acknowledgments
We thank our Partners

Partner Exchange

Industry Insights Partner

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Contents
1.

PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

2.

INDUSTRY INSIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

3.

Promoting Inclusive Growth Role of Non-Banking Finance Companies


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10

Role of NBFCs in promoting inclusive growth


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13

Role of NBFC-MFIs in promoting inclusive growth


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17

Role of NBFCs in promoting inclusive growth


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21

Role of NBFCs in promoting inclusive growth


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25

Role of NBFCs in promoting inclusive growth


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30

Role of NBFCs in promoting inclusive growth


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33

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NBFC-MFI: The Beacon of Financial Inclusion


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41

Role of NBFC in inclusive growth


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45

Criticality of NBFCs in Indias infrastructure creation


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48

Role of NBFCs in promoting inclusive growth


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52

THE POLICY PULSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57






4.

Indian Economy-An Update


Investment Banking Updates
Markets Watch

70
73
78

FINANCIAL SECTOR EVENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79




6.

58
62
65

FICCIS DATA CENTRE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69






5.

Banking Sector
Capital Markets Sector
Insurance Sector

Synopsis of Past Events

79

FINTAINMENT SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82

Preface

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Dr. A. Didar Singh


Secretary General
FICCI

Industry Insights
In association with

Industry Insights

Promoting Inclusive Growth Role


of Non-Banking Finance Companies
Mr. Shachindra Nath, *URXS&(25HOLJDUH(QWHUSULVHV/WG

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10 Role of NBFCs in promoting inclusive growth

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Role of NBFCs in promoting inclusive growth 11

Industry Insights

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12 Role of NBFCs in promoting inclusive growth

Industry Insights

Role of NBFCs in promoting


inclusive growth
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risk in banks

Role of NBFCs in promoting inclusive growth 13

Industry Insights

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14 Role of NBFCs in promoting inclusive growth

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Role of NBFCs in promoting inclusive growth 15

Industry Insights

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16 Role of NBFCs in promoting inclusive growth

Industry Insights

Role of NBFC-MFIs in promoting


inclusive growth
Mr. Chandra Shekhar Ghosh
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Role of NBFCs in promoting inclusive growth 17

Industry Insights

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18 Role of NBFCs in promoting inclusive growth

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Industry Insights

Table 1: A brief of the development programme run by Bandhan


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20 Role of NBFCs in promoting inclusive growth

Industry Insights

Role of NBFCS in Promoting


Inclusive Growth
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Role of NBFCs in promoting inclusive growth 23

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24 Role of NBFCs in promoting inclusive growth

Industry Insights

Role of NBFCs in promoting inclusive growth


Mr. Suman Chowdhury, 'LUHFWRU)LQDQFLDO6HFWRU5DWLQJV
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Role of NBFCs in promoting inclusive growth 25

Industry Insights

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underwriting and
collection systems
after the delinquency
pressures they
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2008-09

60
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1846

20
1000

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26 Role of NBFCs in promoting inclusive growth

Vehicle Finance

Gold loans

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Industry Insights

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Role of NBFCs in promoting inclusive growth 27

Industry Insights

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Role of NBFCs in promoting inclusive growth 29

Industry Insights

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30 Role of NBFCs in promoting inclusive growth

NBFCs have
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Role of NBFCs in promoting inclusive growth 31

Industry Insights

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32 Role of NBFCs in promoting inclusive growth

Industry Insights

Role of NBFCs in promoting


inclusive growth
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banks from partnering with
NBFCs, and instead, has
been continuing to nudge
banks to open their own
branches and originate
assets through their own
staff and agents

________________________________________________________________________________________________________


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Role of NBFCs in promoting inclusive growth 33

Industry Insights

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Role of NBFCs in promoting inclusive growth 35

Industry Insights

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dependent on local
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40 Role of NBFCs in promoting inclusive growth

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Role of NBFCs in promoting inclusive growth 51

Industry Insights

Role of NBFCs in promoting


inclusive growth
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52 Role of NBFCs in promoting inclusive growth

Inclusive growth does


not only imply the
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society in the growth
story & their reaping
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growth

Industry Insights

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Role of NBFCs in promoting inclusive growth 53

Industry Insights

Role of NBFCs in Inclusive


Growth
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54 Role of NBFCs in promoting inclusive growth

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Industry Insights

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NBFCs may be looked


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Former, Executive Director
Union Bank of India

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Role of NBFCs in promoting inclusive growth 55

The Policy Pulse

The Policy Pulse

Banking Sector
Important announcements by RBI
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Other news
Loans to PPP infra projects to be treated as secure
loans: RBI
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58 Role of NBFCs in promoting inclusive growth

The Policy Pulse

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Basel III norms for Indian banks from April 1:


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Govt wants PSBs to consider separate credit limit


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funds to tackle higher NPA issue
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RBI launches study on banks active in selling


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Role of NBFCs in promoting inclusive growth 59

The Policy Pulse

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Core banking must for co-op banks by Dec 31:


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Regulator wants local branches of foreign banks


registered as Indian subsidiaries
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RBI sets up panel to address exporters credit


issues

60 Role of NBFCs in promoting inclusive growth

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The Policy Pulse

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auction route

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SEBI issues guidelines for separate debt segment


on bourses
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ownership
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Mergers, demergers need Sebi clearance


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64 Role of NBFCs in promoting inclusive growth

The Policy Pulse

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Rajiv Gandhi Scheme: SEBI extends new fund


offer to 30 days
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SEBIs discussion paper on buyback through


open market purchase
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SEBIs circular on Amendments to


Guidelines and Equity Listing Agreement

ESOP

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Insurance Sector
IRDA asks insurers to have anti-fraud policy
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IRDA comes out with framework for monitoring


insurance frauds
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areas
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IRDA introduces File and Use procedure for life


products

IRDA revises norms for life insurance products


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Role of NBFCs in promoting inclusive growth 65

The Policy Pulse


Partner Exchange

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IRDA standardises health insurance


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IRDA brings back auto clearance process for life


products
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IRDA bans life cover with highest NAV


guarantee
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IRDA hikes equity exposure limit of insurers to


15 percent
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IRDA allows standalone health insurers to use


life insurance agents for sales
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Insurers allowed to buy up to 15% stake in


companies
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IRDA proposes to lower solvency margin to 145


pc for insurers
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IRDA raises third-party motor cover premium


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66 Role of NBFCs in promoting inclusive growth

The Policy Pulse

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IRDA looking at two-year policies to improve


cover
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Life insurers to have


policyholders: IRDA

standard

form

for

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IRDA to review broker norms


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Insurers, IRDA to launch awareness campaign


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IRDA halves compulsory ceding by domestic


general insurers to GlC Re
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IRDA tweaks investment norms for insurance


companies
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General insurers can bring out an IPO, post 10


years of operation
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Non-linked variable products, Ulips to be treated


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Role of NBFCs in promoting inclusive growth 71

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FICCIs Data Centre

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Role of NBFCs in promoting inclusive growth 73

FICCIs Data Centre

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74 Role of NBFCs in promoting inclusive growth

FICCIs Data Centre

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FICCIs Data Centre

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Role of NBFCs in promoting inclusive growth 77

FICCIs Data Centre

Markets Watch

78 Role of NBFCs in promoting inclusive growth

Financial Sector Events

Synopsis of past events


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Role of NBFCs in promoting inclusive growth 79

Financial Sector Events

Banking and Financial Institutions Committee Meeting


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Partner Exchange

Financial Sector Events

Interactive Meetings with NASDAQ Dubai delegation


8th $SULO, 2013, New Delhi and 9th, $SULO2013, Mumbai

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Role of NBFCs in promoting inclusive growth 81

Fintainment Section

Fintainment Section
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Role of NBFCs in promoting inclusive growth 83

Fintainment Section

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84 Role of NBFCs in promoting inclusive growth

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Role of NBFCs in promoting inclusive growth 85

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