Watch Editor's Take with Moneycontrol's Deputy Executive Editor Ravi Krishnan to find out more about the liquidity crisis facing NBFCs.
Just when it seemed like things were stabilising, news of Supertech's loan default broke out and there was a bout of panic in the markets which led to a massive selloff on Wednesday.
Many non-banking financial companies are exposed to Supertech and will face asset quality troubles. This means that they will have to set aside more money for provisioning and their earnings will be affected. This in turn will curtail their ability to lend further.Watch Editor's Take with Moneycontrol's Deputy Executive Editor Ravi Krishnan to find out more about what the scenario will be like for NBFCs going forward.