NBFC crisis has bottomed out; govt, RBI will closely monitor situation: Nirmala

Finance Minister Nirmala Sitharaman Saturday said the NBFC crisis seems to have bottomed out and the government along with the RBI will closely monitor the situation to ensure that the sector comes out of the wood.

Sitharaman in her Budget on Friday announced a series of steps to give relief to non-banking financial companies facing cash crunch following the collapse of IL&FS last year.

"Largely it (NBFC crisis) has reached a peak in terms of challenges that they are facing. The problem probably is not over yet but it can only plateau rather than worsen ... the deteriorating situation is reached its bottom ... now it has bottomed out," she said.

Observing that the comprehensive solutions in the Budget have been announced, the Finance Minister said, "We shall be closely monitoring with RBI to see how it's moving. So strictly speaking, I feel the NBFC issue has been addressed."
With regard to the reaction of the market on raising minimum public float to 35 per cent from existing 25 per cent, the finance minister said, "I am yet to hear response Parliament debating about it."