He said the top-50 NBFCs are being regularly monitored by the RBI as it has a fairly good idea on which of the NBFCs are “vulnerable” and made it clear that “RBI will not allow any large NBFC to collapse.”
PTI
Updated:December 5, 2019, 2:33 PM IST
Representative image.
Mumbai: Governor Shaktikanta Das on Thursday said credit flow from banks to the battered non-bank lenders is improving of late and that the central bank will not allow any large shadow bank to collapse.
Without naming DHFL, which has been sent for bankruptcy, Das said the regulator is best placed to assess a non-banking lender and termed the move to take such an entity to the NCLT as a “pragmatic” step.
Das said the top-50 NBFCs are being regularly monitored by the RBI as it has a fairly good idea on which of the NBFCs are “vulnerable” and made it clear that “RBI will not allow any large NBFC to collapse.”
Das said the central bank has been taking a slew of measures to increase credit flow from banks to NBFCs, and said the steps taken so far have had the desired impact but did not offer any numbers.
It can be noted that the NBFC sector has been under pressure since September 2018, after the collapse of infra lender IL&FS, and other names have been added to the list of stressed companies at regular intervals.
The issues started with liquidity constraints stemming from the asset liability mismatches for such entities.
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Source: News18