YES Bank bailout may renew fund, liquidity pressure on NBFIs: Fitch

The move comes even as the impact of coronavirus is beginning to be felt in India, raising further risks to economic growth and NBFI asset quality

Rating agency Fitch on Wednesday said non-bank financial institutions (NBFIs) in India could face renewed pressure on funding and liquidity following the bailout of ailing private sector lender YES Bank.

The Reserve Bank of India (RBI) hammered out a restructuring package — by roping in State Bank of India and imposing a moratorium on withdrawals — to salvage the private bank. This could compound the credit squeeze across the country’s financial system, adding to the economic uncertainty, Fitch said.

The move comes even as the impact of coronavirus is beginning to be felt in India, raising further risks to economic