Credit Flow From Banks To NBFCs Is Improving, RBI’s Shaktikanta Das Says
Top-50 NBFCs are being regularly monitored by RBI as it has a fairly good idea on which of the NBFCs are “vulnerable”, Das says.
The credit flow from banks to liquidity-crisis-hit non-banking financial companies is improving, Reserve Bank of India Governor Shaktikanta Das said on Thursday, adding that the central bank will not let any shadow bank to collapse.
Without naming Dewan Housing Finance Corporation Ltd., which has been admitted to the bankruptcy courts, Das said RBI is best placed to assess an NBFC and termed the move to take such an entity to the National Company Law Tribunal as a "pragmatic" step.
According to Das, 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".
He said the central bank has been taking several measures to increase credit flow from banks to NBFCs, and said the steps taken so far have had the desired impact. He didn’t elaborate.
The NBFC sector has been under pressure since the collapse of IL&FS Group in September 2018. Several companies in the sector have collapsed since then.