NBFCs go easy on hiring as IL&FS crisis hits their lending business

Until a few months ago, NBFCs were recruiting chief executive officers with annual packages of Rs 20-45 million

Non-banking financial companies (NBFCs) have applied the brakes on hiring as the liquidity squeeze in the aftermath of the IL&FS crisis has hit their lending business. 

Until a few months ago, NBFCs were busy recruiting, going to the extent of poaching top talent from competitors including banks. In FY18, for instance, 60-70 per cent of NBFC hires were from the banking sector, show industry estimates.

“The sentiment has turned sour and nobody is hiring,” said Jaspal Bindra, executive chairman at Centrum Group, which has hired roughly 50 executives from banks at mid and senior levels, in the last two financial