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.

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