 "RBI eases norms for banks to lend more to NBFCs, housing finance companies")
In a bid to increase liquidity for cash-strapped non-banking financial companies (NBFCs), the Reserve Bank of India (RBI) on Friday announced regulatory relaxations, giving banks room to lend more to NBFCs and housing finance companies (HFCs). However, the markets were not enthused with the easing of rules. Finance companies’ shares fell 4-18 per cent.
While welcoming the RBI’s move, bankers Business Standard spoke to were sceptical of any immediate relief for NBFCs.
The RBI enhanced the single-borrower exposure limit for NBFCs from 10 per cent of a bank’s capital funds to 15 per cent. This enhanced limit for lending is not available
