With borrowers unable to service loans, shadow banks are in for more pain

The bulk of the NBFC business is cornered by the top ten players, and they include several state-run entities.

Y S Chakravarti, managing director and chief executive officer (CEO) of Shriram City Union Finance, has a laundry list of measures that he believes will ease the pain of non-banking financial companies (NBFCs). He wants “a stand-still facility to enable borrowers to tide over the pressures they face in servicing loans,” and believes that “revisiting bad-loan classification norms will also help”.
 
He suggests that these should be relaxed to 180 days, from the present 90 days. ICRA Ratings reckons that housing finance companies (HFCs) will feel the stress of the Covid-19’s second-wave lockdowns, because 25-30 per cent of their