The real estate sector is seeing a significant fall in the economy which in turn has been affecting the NBFCs.
Rating agency ICRA downgraded both Edelweiss Financial Services and Piramal Capital & Housing Finance on June 25, 2019. The reason for the downgrade is due to the likelihood of higher default rate in the real estate section.
It comes at a time when the NBFC sector is struggling due to the IL&FS default and the downgrades of DHLF and Reliance ADAG.
The real estate sector is seeing a downturn which has been affecting the NBFCs. The liquidity crunch of NBFCS will also tighten as mutual funds have become selective in lending.