While bigger and well managed NBFC-MFIs are still managing to receive funds, though at a higher cost, the smaller ones are shunned because they are perceived as high-risk.
The central bank said the banks have to be listed within three years, without fail.
The bank has recovered Rs 370 crore so far and is looking to recover another Rs 500-700 crore in the next two quarters.
The profit was buoyed by a 46% year-on-year growth in gross loan portfolio to Rs 15,482 crore and healthy repayment of loans.
The final shape of the scheme has failed to satisfy the retired employees as their demand for arrear payment has not been considered.
The liquidity squeeze plaguing non-banking finance companies (NBFCs) is having a ripple effect on microfinance operations far away from the country’s big cities.
The Survey of Professional Forecasters conducted by Reserve Bank of India showed that GDP growth for Q3 and Q4 are likely to be in the lower end of 7-7.5% range.
Funds are drying up. What was once a routine exercise — the rollover of loans — is now rare.
"The NBFCs are suffering because of borrowing short and lending long. It’s high time that they correct it," Pradhan said.
There are many complaints from the NBFCs that the majority of banks are declining to release funds even against sanctioned loan limits.
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