There is lack of confidence in the system, not liquidity: Ajay Piramal

According to Ajay Piramal, lenders must get confidence that the NBFC sector is a good one to lend to

The crisis at non-bank financial corporations (NBFCs) has forced many to go slow on lending to property developers. However, Piramal Enterprises’ (PEL’s) finance arm continues to lend, and these loans are well protected, Ajay Piramal, chairman, tells Raghavendra Kamath and Sohini Das. On Thursday, PEL posted a 25 per cent rise in consolidated net profit at Rs 4.8 billion in the September quarter on back of strong performance of its financial services business. It had posted a consolidated net profit of Rs 3.84 billion in the same quarter a year ago. Edited excerpts:

Any delay in payment from developers or home