 "Fitch rating agency")
Global rating agency Dewan Housing Corporation's liquidity problems and its failure this week to pay coupons highlight the funding challenges faced by India's non-bank finance sector.
The liquidity pressures faced by finance firms are in stark contrast to situation in Indian banking sector. The latter has not faced significant liquidity pressure or deposit withdrawals, despite asset-quality and capital weaknesses.
The credit growth in India is expected to remain slow, despite this week's interest-rate cut, as most banks are capital-constrained and NBFIs face tighter funding conditions, Fitch said in a statement.
Non-bank financial institutions' (NBFI) issues were already known to the
