Post demonetisation India’s booming non-banking financial companies (NBFCs) space took a major blow as repayments made to them were usually in cash.
The first week of demonetisation saw no repayment at all but collection gradually picked post November 9, said Samit Ghosh, CEO and MD of Ujjivan.
In an interview with CNBC-TV18 he said the compant has been disbursing loan from whatever repayments they are receiving post the cash ban.
On the RBI’s decision to relax loan repayment for banks and NBFCs, as they will get an additional 60 days to for recognizing certain loans as substandard, Ghosh said that this a positive circular in terms of provisioning but it should not be misinterpreted as a two month repayment holiday.
A misinterpretation of this relaxation will not only impact microfinance banks, but also NBFCs and other banks, he said.
On the company’s earnings he said that it is too soon to comment on what impact demonetisation will have but things are expected to ease post December 31, 2016.Watch video for more.
Discover 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!
