The single biggest learning is that percentages after a certain size are not relevant, both on the asset and the liability side, says IndiaBulls Housing MD Gagan Banga
RBI governor says sector being closely monitored; credit flow is improving
Note suggests liquidity support, govt guarantee for securities issued by SPVs
As per the report, in September, the jump in retail credit at Rs 51,900 crore was nearly double that of August, of which housing loans jumped by 2.6 times.
The stress test examines the potential impact on banks of liquidity pressures in the NBFC sector developing into widespread failures
It is not obvious how the system will come out of it
May ask RBI for relaxed co-origination norms
Stressed MSME assets will not be labelled NPAs till March 31, 2020
FIDC has suggested that the National Housing Bank (NHB) which acts as the refinancing body for HFCs can be made the apex refinancing body for the entire NBFC sector
Banks have to set aside capital for loan exposures
Borrowings by NBFCs up 21% CAGR in last 5 years
The economic growth slowed to a seven-year low to 5% in April to June quarter from 8% a year ago
From the perspective of fiscal consolidation, the announcements do not impose significant extra fiscal burden, says Rajeev Jain
RBI has also tightened regulations this year by putting in place rules requiring shadow lenders to appoint a chief risk officer and proposing stringent liquidity requirements
In FY19, NBFCs had a 30% share in outstanding retail loans, while public sector lenders had a 39% share and private banks had 26%
She pointed out that developers have been facing cash crunch following the liquidity crisis in the NBFC sector
He has since steered the bank on to a conservative path, eschewing needless risks. He's been candid enough to admit that the exposure to infrastructure sector in the past proved to be an Achilles heel
A few quarters of pain in sectors that depend upon shadow financing is a small price to pay to produce a sector that winds up doing its job efficiently and sustainably
The focus in infrastructure is a positive step and that's what the markets, too, were expecting. However, infrastructure financing is a long duration game
The government does not have any plans to infuse funds in privately-held shadow banks, FM Sitharaman said