Banks go slow on direct credit disbursals, NBFCs bet on securitisation

The total securitisation portfolio of NBFCs was Rs 836 billion on fiscal 17-18, down from about Rs 900 billion in 2016-17, according to data from Icra

Liquidity needs of the non-banking financial sector will be addressed to a large extent, State Bank of India (SBI) 

has assured. The bank has also said that it will more than double its securitisation portfolio. However, the portfolio itself has to grow so that the sector doesn’t face a liquidity crunch, say experts.

Bankers are awaiting RBI’s revised guidelines on NBFCs before increasing their direct credit to the entities. However, banks have told non-banking finance companies (NBFCs) that they would block the money for a higher fee, also referred to as ‘commitment charges.’

On Wednesday, SBI said it will step up “target for