Reserve Bank of India (RBI) panel proposed new tough norms for the non-banking financial companies (NBFCs). The main aim behind this move was to strengthen the regulatory and supervisory framework for these lenders.
In an interview to CNBC-TV18, VP Nandakumar, chairman and managing director, Manappuram General Finance & Leasing shared his view on the key statements made by the RBI and gave a perspective of how the company would perform under these guidelines. Here is the edited transcript of his interview. Also watch the accompanying video. Q: What are your thoughts on the key statements made by the RBI?
A: We welcome the thought as regulations are always good. It gives some respectability to the whole sector. As much as 12% Tier I capital requirement within three years and Rs 50 crore of minimum asset size are generally good.
The liquidity ratio should be maintained for the large companies. For many of the existing players, the regulator will give around two-three years to comply with. If these are introduced all of a sudden, many of the companies get into difficulty. Q: Which are the specific provisions where the RBI should give couple of year
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