The revamped partial guarantee scheme will need a braveheart banker to succeed
Even though a sizable chunk of NBFC loans falls under the BBB+ category, the quality of these loans is doubtful
December 13, 2019 / 09:27 AM IST
In a move that can be termed desperate rather than strategic the government has tweaked a scheme to provide liquidity to non-banking finance companies (NBFC). This move is a follow-up of an announcement made during the budget which found few takers.
In her budget announcement finance minister Nirmala Sitharaman rolled out the Partial Guarantee Scheme under which the government provided a guarantee to Public Sector Banks (PSBs) for purchase of pooled assets (rated AA or above) for the first...