NBFCs face acid test as record Rs 1.2 trn repayment in Oct-Dec looms

India's central bank eased rules last week to help the nation's non-bank lenders access loans more easily

India’s non-bank financial companies have had a tough few months amid the fallout from defaults by one of their own, conglomerate IL&FS group.

The next few months also present a challenge to the NBFCs, which rely heavily on debt issued to the nation’s money market funds for short-term financing. The financiers must repay about Rs  1.2 trillion ($16.3 billion) of commercial paper in October-December, near a record 1.46 trillion rupees in August-October, according to data from Securities and Exchange Board of India.

The timing isn’t ideal. Indian money-market funds popular over lower-yielding savings accounts suffered the worst withdrawals since at least April