New RBI norms likely o affect NBFCs' return on asset: Crisil

On the proposal to hike the tier-I capital to 10 per cent and 12 per cent for select NBFCs from 7.5 per cent, the report said it will improve the quality of capital and enhance the cushion against asset-side risks.

While the existing tier-I capital ratio of most NBFCs is comfortably above the revised regulatory requirement, the sector will have to raise around Rs 8,000 crore to maintain the current cushion over regulatory minimum, under the revised norms, noted the report.

On the need for RBI nod for major shareholding and key management changes, the report said NBFCs would need to strengthen their internal processes and reporting systems to meet these stipulations, and that the guidelines will enhance transparency and corporate governance practices.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.