NBFCs face double whammy of liquidity bind and tighter regulations

It may appear that NBFCs are reading the tea leaves right on funding

Ask Keki Mistry if the wariness towards non-banking finance companies (NBFCs) in the aftermath of the Infrastructure Leasing & Financial Services (IL&FS) fiasco is an over-reaction and he readily says: “Yes. On the unfounded belief that other NBFCs would default as well,” says the vice-chairman and CEO of Housing Development Finance Corporation (HDFC). 

His view is echoed by Umesh Revankar, managing director and CEO of Shriram Transport Finance, who disagrees with the false equivalence being created: “Trying to link IL&FS with NBFCs may not be appropriate as most have their own core segment. Creating a bank vs NBFC analysis, and market