Sanjiv Bajaj said that the top 10 non-banking financial companies (NBFCs) have been accounting for around 30 percent of incremental lending in the sector
Sanjiv Bajaj, MD of Bajaj Finserv, spoke to CNBC-TV18 about the incremental lending in the non-banking financial companies' (NBFCs) space and liquidity in the banking system.
Bajaj said that the top 10 non-banking financial companies (NBFCs) have been accounting for around 30 percent of incremental lending in the sector.
“The current challenge that came up, I believe actually was a single event challenge which unnecessarily has drawn itself out into a much larger scale which is the availability of short-term liquidity,” Bajaj said on Monday.
According to him, “This is not a credit-linked event right now but if the liquidity event is not taken care of it could lead to credit lead event with a few more defaults. So that requires an immediate action and correction.”He further said that the Reserve Bank of India (RBI) has taken measures in solving the liquidity issue over the last few weeks. "They have to monitor this closely and ensure that this resolves," said Bajaj.