Borrowing costs ease for NBFCs after RBI pumps more cash in credit market

India’s central-bank move to pump more cash in the credit market has improved the health of shadow lenders, helping to assuage concerns about their revival prospects.
 

Average spreads on the lenders’ AAA rated five-year bonds fell by the most in four months in October. Three other indexes tracking shadow bank sector health compiled by Bloomberg, ranging from banking-system liquidity to outstanding debt and share performance, all remained steady.

 

Given the reach of shadow banks into most areas of the Indian economy, from small business owners to large conglomerates, easier borrowing conditions are good news. Growth in