Nbfcs Expect Easier Access To Funds

The hope springs mainly on account of the expected reduction in the CRR requirements. With a 1 percentage point reduction in the CRR requirements, NBFCs are hopeful of accessing bank funds at easier rates. Though there has been a paring of prime lending rates (PLR) by some banks, only the larger firms have been able to access funds at low rates. For the smaller entities, there has been no drop in the effective rates.

If the resources within the banking system improve, with a reduction in CRR requirements, bankers are of the opinion that there will be a willingness to provide funds to clients other than blue-chip companies.

During the past few weeks, credit offtake has not picked up due to banks being wary of defaults. The bond market has been tapped earlier in the year and the commercial paper route too has been utilised. Finance company heads have reported that the liquidity has improved over the past few weeks.