Banks will have to take more haircuts in NBFC resolution process: Das

Banks will have to take more haircuts while resolving the stressed loans extended to non-banking lenders who are found wanting on the corporate governance front, Reserve Bank governor Shaktikanta Das warned Thursday.

On the government move to have merge 10 banks to four larger ones, Das said the amalgamations ought to be non- disruptive and affirmed the central bank's support to ensure the same is achieved.

Das' comment on non-banking finance companies (NBFCs) comes at a time when banks are grappling with the resolution of stressed cases like their over Rs 50,000 crore dues from mortgage financier DHFL. The Wadhawans-promoted stressed entity