NBFC crisis averted, but some troubles persist: HDFC Bank MD Aditya Puri

Last year's defaults by IL&FS exposed fault lines among India's shadow lenders, which had grown rapidly to account for a third of all new loans over the previous three years

Troubles among India’s non-bank financiers will persist for at least a year even if the danger of a full-blown financial crisis has passed, according to the head of the nation’s most valuable bank.

Tighter regulatory oversight and asset sales have staved off the worst of the problems afflicting India’s non-bank financial firms following last year’s defaults by Infrastructure Leasing & Financial Services Ltd., according to HDFC Bank Ltd.’s Managing Director Aditya Puri. Even so, it will be another 12 to 18 months before the liquidity issues in the wider sector are resolved, Puri added in an interview with Bloomberg News