• Banks gave about Rs 72,136 crore to non-banking financial companies (NBFCs) from April to October 2019, as against Rs 66,222 crore in same period last year
• After IL&FS default in Q2FY19 banks have turned cautious in taking additional exposure
• Giving money mostly to NBFCs which extend retail and SME loans. The wholesale lenders are struggling to get extra funds
• Lenders have stepped up scrutiny of loan profile of finance firms. They are charging higher interest rate and higher collateral cover for exposures.