NBFC crisis: $22 billion already gone, but more dark days likely ahead

Indian shares, which were the best in Asia in 2018, have lost more than $100 billion in value this year

As key engines of loan growth in the world’s fastest-expanding major economy, they once were investor favourites. But now traders won’t go near India’s shadow banks.

About $22 billion has evaporated from a group of almost two dozens non-bank financial companies since Aug. 31, before confidence was rocked. And investors aren’t rushing to get back in, according to Citigroup Inc. analyst Manish B Shukla.

“Despite the sharp correction in stock prices of NBFCs, most investors are cautious on these names given near-term uncertainties,” he wrote in a report earlier this month. He notes volatile third-quarter results and potential funding tightness after the