Demonetisation might further encourage non-banking financial companies (NBFCs) to look away from their loan-against property portfolios. “The growth rate of the loan-against-property business is likely to shrink to 15-20% this financial year, as compared with 22-24% two years ago”, sa…
Tag: CRISIL
Currency Switch Impact | Start-ups see decline in business after demonetisation: Survey
Non-banking financial companies (NBFCs) will raise their share of overall loans by 300 basis points (bps) to 17.6% in the next three fiscals, ratings agency Crisil said in a statement on November 23. This will be equivalent to the growth that the companies have seen in the last five years, largel…
Currency Switch Impact | MSMEs reap benefits from investments in brand-building
The demonetisation of high-denomination currency notes has resulted in a liquidity crunch and a short-term dip in retail consumption. CRISIL believes that in times of turbulence such as this, micro, small and medium enterprises (MSMEs) that have invested in brand creation and have good recall wit…
Currency Switch Impact | RBI gives small borrowers 60 extra days to repay credit
The Reserve Bank of India (RBI) on November 21 said small borrowers, who have been facing the brunt of demonetisation, would get an additional 60 days to repay their credit, including agriculture and housing loans. Borrowers with loans up to Rs 1 crore from banks and finance companies would be el…
Auto Component SMEs should diversify for speedy growth : CRISIL
Diversification in terms of customers, geography and products is a differentiator for Micro, Small and Medium Enterprises (MSMEs) in the auto component industry, an analysis of 300 such units rated by CRISIL has revealed. The industry has seen a slowdown in revenue growth over the past four finan…
Achhe Din: SMEs now get a new life via services
The focus has invariably been on the manufacturing space among SMEs since the government took it upon itself to increase its share in the economic pie. Since it announced its flagship programme Make in India to boost manufacturing in India, the sector has seen a renewed interest among stakeholder…
Amend MSMED Act to ensure faster payments to MSEs
Delays in receipt of dues from corporates remain a major challenge for Micro and Small Enterprises (MSEs) in India, along with high cost of working capital finance and collateral requirements of lenders. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 stipulates that receiva…
Centrum bets big on housing, SME lending
Financial services group Centrum Capital is overhauling its business under its Executive Chairman Jaspal Bindra, Former Asia-Pacific Chief of Standard Chartered Bank. The new focus is on asset-led activities such as housing finance and loans to Small and Medium Enterprises (SMEs). At the same tim…
Growth of MSMEs in IT/ITeS constrained by lack of funds
Micro, Small and Medium Enterprises operating in the information technology (IT)/IT enabled services (ITeS) space tend to find growth constrained, mainly due to lack of capital. An analysis of 4,000 CRISIL-rated MSMEs shows that those focused on IT/ITeS grew by 12 per cent per annum between FY13 …
The promoter of an SME has high skin in the game | R Vasudevan, Senior Director, Crisil
Small businesses have fared better during the economic slowdown than large companies. They have also kept debt problems under check, says R Vasudevan, Senior Director, Crisil Ratings – SME. Q: How many SMEs does Crisil rate? Are the ratings driven by statutory requirements? If not, why seek ratin…