A longer term worry for those exposed to the state electricity boards (SEBs) is a recent IIFL report which points out that the finances of SEBs has taken a turn for the worse. Their networth have been completely wiped out. Therefore, companies like REC and Power Finance Corporation which are exposed monetarily could face some near-term reverses.
For NBFCs such as PFC and REC, these risks are multiplying not from growth deceleration but due to loan book concentration. Due to restrictions on exposure limits, these companies were left with no option but to increase their lending to SEBs. Harshvardhan Dole, VP Research - Institutional Equities of IIFL, in an interview on CNBC-TV18 talks about the report that he wrote. Below is a verbatim transcript of his interview with CNBC-TV18Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
