Analysts bullish on NBFCs despite RBI's PCA framework

The PCA being extended to NBFCs may prove to be a good decision for the long-term as it will encourage good practises and is also expected to improve governance

The Reserve Bank of India's (RBI's) diktat to bring non-banking finance companies (NBFCs) under its Prompt Corrective Action (PCA) framework will be largely neutral for the sector, said analysts, who believe the companies covered under the ambit are already complying with the norms.

"Since most of the listed NBFCs are in compliance with the regulatory provisions mentioned by the RBI in the framework, the move will be neutral for the sector," said Kajal Gandhi, BFSI analyst at ICICI Direct.

The move, she added, was to make NBFCs more vigilant going-forward, and to avoid a repeat of a DHFL or an