Trade Nivesh Stability is returning to non-banking financial companies (NBFCs). Last year, several NBFC shares went on the upswing after IL&FS default. But now there are signs of stability in the business of NBFCs on some important parameters.
However, the cost of debt has increased for many companies. These include Shriram Transport and Shriram City Union. According to a report by Kotak Institutional Equity, which came out last week, these companies have kept their net interest margin (NIM) solid.
According to the report, the net interest margin of Bajaj Finance and HDFC remains stable. The cost of debt has increased for these companies as well. However, it is too early to say that the NBFC sector is completely out of crisis.
Like Bajaj Finance and HDFC, Cholamdalan Finance, Larsen & Toubro Finance Holdings, LIC Housing Finance also have net interest margins from the last five quarters till the first quarter of FY 2019-20. Net interest margin matters a lot for lending companies. Their success depends on this scale.
However, the cost of debt has increased for many companies. These include Shriram Transport and Shriram City Union. According to a report by Kotak Institutional Equity, which came out last week, these companies have kept their net interest margin (NIM) solid.
According to the report, the net interest margin of Bajaj Finance and HDFC remains stable. The cost of debt has increased for these companies as well. However, it is too early to say that the NBFC sector is completely out of crisis.
Like Bajaj Finance and HDFC, Cholamdalan Finance, Larsen & Toubro Finance Holdings, LIC Housing Finance also have net interest margins from the last five quarters till the first quarter of FY 2019-20. Net interest margin matters a lot for lending companies. Their success depends on this scale.
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