Sakshi Batra discusses the fallout of the IL&FS crisis on the NBFC sector with Gaurav Choudhury, Deputy Executive Editor, Moneycontrol.
Over the past one month, the severe liquidity crunch faced by the infrastructure financier IL&FS has caused anxiety in the entire NBFC sector.
As a cautionary measure, the RBI has already started an inspection of several NBFCs to assess their exposure to high-risk assets. The Reserve Bank of India (RBI) is looking to tighten norms for non-bank lenders to address the mismatch in their assets and liabilities.
The RBI governor, Urjit Patel, had earlier said, “The well-structured institutional measures taken by the government in the IL&FS case have been timely and appropriate. These have helped stabilise the situation and the RBI will engage with the new management if necessary on assistance on its efforts going forward”.