More pincer moves: Shadow banks may soon be governed by regulatory regime

The smaller and lower-rated NBFCs (AA-rated or the unrated) have been shunned by both banks and markets

Just when you thought that some non-banking financial companies (NBFCs) have got a lifeline through the hope of conversion into a bank, comes the move for a regulatory approach linked to their systemic-risk contribution. The big names in the business prefer not to go on record and would rather wait to read the consultation paper on the issue.

“My sense is that the numbers for the current quarter will give us the correct post-moratorium picture,” says the chief executive officer of an NBFC. 

The Reserve Bank of India’s (RBI’s) supervisory returns show that 29 per cent of their customers and 49 per