Aims Bankable: Nbfcs
The non-banking finance companies (NBFCs) have welcomed the Bharatiya Janata Partys (BJP) promise to review the entire regulation on the NBFCs.
The partys manifesto identified the potential of this sector and added that the policy for the non-banking finance companies has been ad hoc and they have been dealt with, at times, in a reckless manner.
The manifest said, The new Reserve Bank of India guidelines preventing non-banking finance companies from accepting deposits without rating is absurd as we have not even developed standards for rating...
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According to G C Garg, managing director of Llyods Finance, BJPs thinking is in the right line as one should not undermine the operations of NBFCs. This industry is part of economic growth and BJP has recognised the need for the NBFCs in this system. One cannot write off the non-banking finance companies sector altogether.
Even banks are in favour of the fact that BJP plans to rationalise the banking sector by creating specialisation in unit banking, retail banking and commercial banking.
This will be done by consolidation and mergers to create global size banks.
P H Ravikumar, ICICI Bank executive vice-president, welcomed the step and stated that there is need for international sized banks in India.
He, however, added that the BJP will have to address the issue of excess labour resulting from mergers.