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Non-banking finance companies (NBFCs) are beginning to add crucial jobs across various functions, indicating that stability has returned to a key sector that was unsettled last autumn by a liquidity squeeze and subsequent increases in capital costs.  NBFCs could hire about 15,000 people in FY20, an estimate by recruitment firm TeamLease showed. Among those adding jobs are Mahindra Finance, Shriram Transport Finance, Piramal Capital, Aditya Birla Finance, IIFL, Magma FinCorp, and Ugro Capital. These companies have already begun recruitments, and the Jan-March quarter alone could account for half the expansion in FY19, which ends in 10 days. According to TeamLease, NBFCs have hired around 10,000 employees in FY19.  Sector Overcomes IL&FS Setback “The (NBFC) sector is poised for the next level of growth in next few years and well-run NBFCs would benefit the most (from this expansion),” said Ramesh Iyer, managing director at Mahindra Finance. “We are also expanding and d...

The Reserve Bank of India is likely to ease the rules governing disclosure of transfer of bonds among various categories in the portfolios of banks. This could lead to a surge in the treasury income for banks.  The central bank may say that banks need not disclose the transfer of state bonds from the held-to-maturity (HTM) category to the available-for-sale (AFS) segment, said a person with direct knowledge of the matter. The RBI didn’t respond to an email seeking comment until publication of this report.  Banks will also get to shift more of state loans which are in the HTM category to AFS — which means an increase in liquidity as these bonds carry higher coupon rates. This will also help state governments buy back bonds if they want to cut their borrowing costs in falling interest rate regimes.  The matter was discussed in a meeting held between the RBI and state finance secretaries a week ago. The RBI had proposed a rulebased approach in fixing new ways and means...