Got a Query? Contact HelpDesk +91-124-3341580
in_01
Skip Navigation Links
ABOUT ICRA
INVESTORS
CAREERS
IN NEWS
CONTACT US
Indian Tractor Industry – Monthly Update: February 2017        Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices        Public Announcement for Buyback of Equity Shares        Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures        Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook        Delay in resumption of imports by Iran likely to hinder recovery in Basmati rice exports from India: ICRA        Indian Mortgage Finance Market Update for H1FY2017: Affordable housing segment to remain key growth driver; overall housing loan growth likely to witness near term moderation Performance Review of Housing Finance Companies and Industry Outlook        WPI inflation surges to higher-than-expected 5.2% in Jan 2017 led by commodity prices, unfavourable base effect        Report on Housing Finance Companies: Key financial and operational statistics of the housing finance companies extracted from ICRA’s databases, presented in a format convenient to read and understand        Indian Automobile Industry – Two Wheelers: Emerging Out Of Demonetization Woes: Monthly Update       
 
Skip Navigation Links
CURRENT RATING LIST
RATINGS
GUIDE TO CREDIT RATINGS
GRADINGS
RATING/GRADING SCALE
RATING/GRADING METHODOLOGIES
SPECIAL COMMENTS
ECONOMY AND DEBT MARKET
ICRA BULLETIN: MONEY &
FINANCE

Indian Poultry Industry: Poultry industry profitability expected to improve sharply in FY2017 majorly benefitting from lower soymeal prices
Indian Tractor Industry – Monthly Update: February 2017
Aggressive bidding for Rewa Ultra Solar Project leads to a significant improvement in cost competitiveness of solar tariff; viability rests on long debt tenure, scale benefits and risk mitigation measures
Indian Retail Non-Banking Finance Market: Currency Crunch to impact near term business growth and asset quality of Retail NBFCs: H1FY2017 Performance Update and Industry Outlook
More...
 
FINANCIAL SECTOR RATING

ICRA’s Financial Sector Debt Ratings cover entities like Banks and Financial Institutions, Non-Banking Finance Companies (NBFCs) and Housing Finance Companies (HFCs). While all of these entities perform the same function of leveraging own funds and lending to others on a cost-plus basis, there are significant differences between them in terms of scale of operations, products and services offered, product delivery, regulatory requirements, and internal control systems. Moreover, the risk profiles of these type of entities can be quite varied. Depending on their requirement and ability to borrow the funding mix of these entities vary significantly, and include term loans, debentures, public deposits, working capital demand loan, cash credit from banks, commercial paper, and Mibor-linked loans, among others.

While NBFCs and HFCs flourished in the Indian subcontinent initially on account of regulatory differentiation, in the current scenario, there is a significant overlap between the business areas of HFCs and NBFCs on the one hand and with that of Banks and Financial Institutions on the other. ICRA’s ratings factor in the gamut of risks that can possibly affect the operations of a finance company: operating risks, financial risks, and management risks. The key determinants of operating risk include volatility in revenues and expenses, regulatory risks, risk of administrative expenses going out of hand, and risk of deterioration in asset quality. Financial risk, on the other hand is driven by capital adequacy, asset liability management, solvency, financial flexibility, and also accounting quality. Management risks cover the subjects of management quality and efficacy of systems.

Related Articles