July 10, 2018 / 10:23 AM / 3 months ago

BUZZ-India's non-banks stare at 50-75 bps squeeze in gross spreads - CRISIL

** Gross spreads of non-banks expected to narrow 50 bps-75 bps this fiscal year, says CRISIL Ltd, the local arm of ratings agency Standard & Poor’s

** Gross spread is asset yield minus borrowing cost, and non-banks are non-banking financial companies and housing companies

** Borrowing cost expected to rise 40 bps-50 bps this fiscal, compared with nearly 100 bps decline in fiscal 2018, CRISIL says in a note on Tuesday

** Efficient liability management would be key to profitability and non-banks might have to look at other avenues for funding, which would be costlier by 50 bps or more - CRISIL

** Non-banks raised over 150 bln rupees ($2.18 bln) in non-convertible debentures in Q1, triple the amount raised in fiscal 2018, CRISIL adds ($1 = 68.7900 Indian rupees)

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