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PE funds bet big on crisis-hit NBFCs even as other investors balk

The funds have invested about $2 billion this year in the country's non-bank financing sector, which is worth some $40 billion.

PE funds bet big on crisis-hit NBFCs even as other investors balk
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Rahul Satija and Baiju Kalesh | Bloomberg
Private equity funds are picking through the rubble of India’s crisis-stricken shadow banking sector, even as other investors balk.

The funds have invested about $2 billion this year in the country’s non-bank financing sector, which is worth some $40 billion. While that’s not enough to staunch the 16-month long cash crunch following the collapse of IL&FS Group, it is 50 per cent higher than the average over the last four years and comes after a strong 2018, according to data from research firm Venture Intelligence.

Investing in India’s shadow banks involves some serious risks. Slowing economic growth

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First Published: Nov 28 2019 | 9:34 AM IST

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