Banks gave about Rs 72,136 crore to NBFCs from April to October 2019

Topics Banks | NBFCs

Banks gave about Rs 72,136 crore to non-banking financial companies (NBFCs) from April to October 2019, as against Rs 66,222 crore in same period last year

Banks are supporting finance companies also by buying the high retail loan pools (home, consumer loan) and SME

• After IL&FS default in Q2FY19 banks have turned cautious in taking additional exposure

• Giving money mostly to NBFCs which extend retail and SME loans. The wholesale lenders are struggling to get extra funds

• Lenders have stepped up scrutiny of loan profile of finance firms. They are charging higher interest rate and higher collateral cover for exposures.

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