NBFCs like us need to focus on liabilities, says Aditya Birla Finance CEO

A slowdown in NBFC/HFC lending will have an impact on the wider economy, he adds

In the wake of the recent problems that hit non-banking financial companies and housing-finance companies, RAKESH SINGH, chief executive officer at Aditya Birla Finance, tells Advait Rao Palepu interest rates are likely to rise. Edited excerpts:

What is the state of affairs for NBFCs, given the increased cost of borrowing in a higher interest rate cycle?

The past couple of months have been quite volatile, from the point of view of NBFCs and HFCs. A lot of questions have been raised after the IL&FS (default) event, especially on fund raising ability and how their asset-liability management (ALM) is balanced. The cost of