NBFC sector to see massive consolidation ahead: Pankaj Murarka

From here on, there will be a differentiation between men and boys in the NBFC sector, Murarka says.

The IL&FS default and the consequent liquidity squeeze has been a perfect storm for the shadow banking sector in India. Though the liquidity squeeze has abated to an extent, this event marks a structural change for the sector going forward, says Pankaj Murarka, Fund Manager and Founder of Renaissance Investment Managers, in an interaction with Swati Verma.

What's your takeaway from the IL&FS crisis that triggered a massive sell-off in NBFCs?

There was significant froth in the shadow banks (NBFCs) in India. Before the crisis came to light, it was very easygoing business for them in India. Liquidity