Slowdown in NBFC/HFC lending will have an impact on wider economy: ABFL CEO

We need to think about having far more balanced asset-liabilities management, says Rakesh Singh

Rakesh Singh, Chief Executive Officer at Aditya Birla Finance tells Advait Rao Palepu that if the liquidity situation does not improve in the next half of this fiscal, there will be an impact on consumption demand as non-banking finance companies (NBFCs) in the past few years have shifted their focus heavily on to the retail segment. More importantly, with housing finance companies and NBFCs facing higher costs of funding and risk-management issues, consolidation and differentiation between the good and average companies is inevitable.

What is the state of affairs for NBFCs today, given the increased cost of borrowings in a