The financial sector landscape has changed materially over the past few years with non-bank financial companies (NBFCs) gaining share in overall credit disbursed even as banks have faced asset quality challenges. The aggregate balance sheet size of the NBFC sector aggregated Rs 21.8 trillion as on March 2018 recording an increase of 18 per cent over the previous year. At the same time, this rapid growth has brought on its own stresses and strains in the sector. Though NPA levels in the sector have been lower compared to banks, recent developments have shown that over leveraging, group exposures and blips in expected inflows have spillover effects across the financial sector. It is therefore of prime importance that Management and Boards of NBFCs exercise effective oversight and control to survive in a changing environment. During this year, NBFCs have been brought on par with banks with respect to NPA recognition. Other important regulations introduced are the requirement to implement Ind AS from April 1 2018 for NBFC-NDSIs and government-owned NBFCs to adopt the Bank’s prudential regulations in a phased manner.
In this context, this programme for NBFCs will focus on the essentials of Corporate Governance. An effective Corporate Governance culture would drive internal controls and build a strong compliance culture within the organisation. The regulatory and supervisory expectations from NBFCs, Systemic issues concerning NBFCs, Resource Raising and Managing ALM, Strengthening of Risk Management, Internal Controls and Compliance, implementation of Ind As would also be covered in the Program.
Broad coverage of the Program
The Programme will cover perspectives on regulation/supervision, corporate governance requirements, as also other important developments. Expert speakers will cover the following topics in detail:
• RBI’s Regulatory and Supervisory Expectations
• Essentials of Corporate Governance
• NBFCs and the Financial System – Linkages with banks and mutual funds
• Resource Raising and Managing ALM
• Strengthening Risk Management, Internal Controls and Compliance
• Implications of Ind As on NBFCs
• An Industry view of the Key Challenges for NBFCs in the medium term