Three choices before wobbly NBFCs

The fate of NBFCs with large exposures to the developers is intertwined with the real estate sector

On March 15, bad debt-laden private sector lender Lakshmi Vilas Bank raised Rs 459.59 crore equity. The money will raise its capital base, said a stock market notice which also scotched the speculations about three non-banking finance companies (NBFCs) — Indiabulls Housing Finance, Edelweiss Financial Services and Srei Infrastructure — exploring possibilities of a merger with the bank. Or, did it?

One of the three even planned to hold a board meeting to discuss the merger but didn’t go ahead. Apparently, the idea has not been dropped; it’s shelved for the time being. 

India’s large NBFCs have realised that the dream run