MUMBAI (Reuters) – The credit flow to India’s non-banking finance companies (NBFCs) should gather pace soon, Reserve Bank of India Governor Shaktikanta Das told the Business Standard daily in an interview published on Friday.
The central bank was closely monitoring and scrutinizing the top 50 NBFCs, and had a good understanding of what were the numbers and cash flows of these firms, Das was quoted as saying.
Credit - Flow - Momentum
“I think the credit flow will gather greater momentum very soon”.
The NBFCs or shadow banks in the country have been left reeling from a massive liquidity crunch, after the collapse of one of the biggest players in the space, Infrastructure Leasing and Financial Services (IL&FS), in September last year.
Firms - Business - Standstill - Absence - Funding
Most of these firms have seen business coming to a standstill in the absence of fresh funding and that has in turn had an impact on the country’s growth which is languishing at more than four-year lows.
The government in its budget earlier this month proposed to offer credit guarantees on the first 10% losses of highly rated, pooled assets worth 1 trillion rupees ($14.48 billion) of financially sound NBFCs.
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