Better-performing NBFCs able to get funds at pre-IL&FS rates: RBI governor

RBI governor says sector being closely monitored; credit flow is improving

Reserve Bank Governor Shaktikanta Das on Thursday said the market had differentiated between the good and not-so-good non-banking financial companies (NBFCs) and the better-performing firms were able to access funds at pre-IL&FS rates.

Currently, “good NBFCs” are able to raise three months commercial paper (CP) at 5-6 per cent interest rate, but the not-so-good ones are raising CPs for three months tenure at 8-9 per cent. Some of them, however, are not able to raise funds at all from debt market and money market.

“In the pre-IL&FS period, the difference in rates for raising CPs for a three-month period was