Manappuram Finance Expects Cost Of Funds To Fall By 50 Basis Points
The Reserve Bank of India's move to peg interest rates to an external benchmark is expected to lower borrowing costs of non-banking lenders by 50-60 basis points, according to VP Nandakumar.
“Due to the RBI's regulatory harmonisation, loan companies will get the benefit which was earlier enjoyed by only asset finance companies,” the managing director and chief executive officer of Manappuram Finance Ltd. told BloombergQuint. “The move will benefit our company as it has an AA-rating and our risk weight to lenders will come down to 30 percent.”
Starting April 1, floating-rate personal or retail loans and small business loans will be linked to an external benchmark, according to a change announced along with the monetary policy.
The central bank lowering the repo rate by 25 basis points in February will also translate into lower cost of funds, Nandakumar said. Manappuram Finance expects its gold business to grow by 10-12 percent this fiscal—lower than its earlier forecast of 15 percent—dragged by its December quarter results.
Watch the full interview here:
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
