{"id":22150,"date":"2023-11-23T12:10:37","date_gmt":"2023-11-23T06:40:37","guid":{"rendered":"https:\/\/shekhawatisamachar.com\/index.php\/2023\/11\/23\/ugro-capital-to-remain-unaffected-after-rbi-tighten-norms\/"},"modified":"2023-11-23T12:10:37","modified_gmt":"2023-11-23T06:40:37","slug":"ugro-capital-to-remain-unaffected-after-rbi-tighten-norms","status":"publish","type":"post","link":"https:\/\/shekhawatisamachar.com\/index.php\/2023\/11\/23\/ugro-capital-to-remain-unaffected-after-rbi-tighten-norms\/","title":{"rendered":"UGRO Capital to remain unaffected after RBI tighten norms"},"content":{"rendered":"<div>\n<p><strong>New Delhi (India), November 23<\/strong>: After the Reserve Bank of India (RBI) tightened norms for consumer credit,\u00a0the\u00a0DataTech\u00a0driven dedicated MSME lender UGRO Capital said that with its diversified lender base, strong\u00a0co-\u00a0lending partnerships and focus on priority sector led MSME,\u00a0they\u00a0do not expect any impact of the increased risk weights of Bank lending to NBFCs either on our growth trajectory or profitability either on immediate basis or in foreseeable future.<\/p>\n<p>The debt equity ratio and the capital adequacy of the Company as on 30th September\u20192023 was 2.8x, and 24.8% respectively.\u00a0They\u00a0have a diversified portfolio managed under\u00a0the\u00a0branch led channel for secured and unsecured business, ecosystem channel, partnership and alliances and direct digital channel.\u00a0The company has\u00a0given the clarification to the RBI circular through a press release dealing with both the norms:<\/p>\n<p>a)\u00a0Increase of Risk Weight for Consumer &amp; Personal Loans<\/p>\n<p>UGRO\u2019s customer base is registered Micro, Small and Medium Enterprises (MSMEs), having Udyam registrations, for both secured and unsecured loans with 100% Priority Sector Lending (\u201cPSL\u201d) loan book. Hence, UGRO would not have any additional risk weight on the underlying portfolio and the impact of the increased risk weights mentioned in the above referred circular on capital adequacy ratio, Return on Equity and Return on Asset would be NIL. \u00a0<\/p>\n<p>b)\u00a0Increase of Risk Weight on Bank Lending to NBFC<\/p>\n<p>Our borrowing is a mix of borrowing from Banks, Capital Markets, DFIs and other financial institutions. We have some of our bank borrowing towards Priority sector loans as per the RBI definition of onward lending. We don\u2019t foresee a significant impact on liquidity because of this circular. As our asset under management qualifies for PSL classification, we do not expect any material impact on the cost of borrowing due to the increase in risk weights for Bank Credit to NBFCs.\u00a0<\/p>\n<p>UGRO, besides borrowing on its Balance Sheet is also focused on Co Lending with diversified set of Public &amp; Private Sector Banks and approximately 45% of its asset under management are managed under off \u2013 balance sheet basis. With its diversified lender base, strong Co Lending partnerships and our focus on priority sector led MSME, we do not expect any impact of the increased risk weights of Bank lending to NBFCs either on our growth trajectory or profitability either on immediate basis or in foreseeable future.<\/p>\n<p>If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>New Delhi (India), November 23: After the Reserve Bank of India (RBI) tightened norms for consumer credit,\u00a0the\u00a0DataTech\u00a0driven dedicated MSME lender UGRO Capital said that with its diversified lender base, strong\u00a0co-\u00a0lending partnerships and focus on priority sector led MSME,\u00a0they\u00a0do not expect any impact of the increased risk weights of Bank lending to NBFCs either on our [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[634,633],"class_list":["post-22150","post","type-post","status-publish","format-standard","hentry","category-press-release","tag-pr","tag-press-release"],"_links":{"self":[{"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/posts\/22150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/comments?post=22150"}],"version-history":[{"count":0,"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/posts\/22150\/revisions"}],"wp:attachment":[{"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/media?parent=22150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/categories?post=22150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shekhawatisamachar.com\/index.php\/wp-json\/wp\/v2\/tags?post=22150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}