Property developers and non-banking financial companies (NBFCs) are in deep trouble due to the crisis in NBFC sector , says Vikas Oberoi, chairman and managing director of Oberoi Realty. The company is the second-largest listed property developer in the country in terms of market capitalisation.
"I can clearly see the NBFCs and the developers both losing their shirt. And in this tug-of war, we have to only wait and watch till this entire orchestra is over. Until and unless we let that stop, if we jump into this, we also run the risk of losing our own shirt," Oberoi said at the at the company's Q4 earnings call on Monday. He said he wants this dust to completely settle between the developers, NBFCs and the banks.
"A lot of these guys have borrowed moneys from the NBFCs and enriched themselves. So all this will have to come out, all the toxic that is there in the asset has to come out. Somebody has to take a hit. As we see it today, nobody is willing to take that hit," he said. Other big developers have echoed views of Oberoi.