RBI allows NBFCs to use quarterly profits in owned fund
The Reserve Bank of India (RBI) just made it easier for nonbank finance companies (NBFCs) and housing finance firms to show a clearer picture of their finances.
From now on, they can count their quarterly profits when calculating their Owned Fund—a key measure of financial health.
The goal? More transparency and up-to-date information on what these companies actually have in the bank.
Experts say this will help keep better track of companies
To use those quarterly profits, NBFCs need to get their numbers reviewed or audited every quarter.
They must reduce a portion of the average dividend paid over the last three financial years from eligible quarterly profits; any losses this year must be fully taken out.
No shortcuts allowed.
Experts like Hari Hara Mishra say these changes should make financial reports more realistic and help everyone keep better track of how these companies are really doing throughout the year.