IL&FS defaults, liquidity crunch may lead to M&As between banks and NBFCs

A good deal with an NBFC will help the smaller and regional banks grow exponentially; some of the bigger NBFCs anyway have a good feel of the bottom of the pyramid

“There will soon be a saturation point for large non-banking finance companies (NBFCs) particularly for those with assets upwards of Rs 75,000 crore. Capital First went ahead and merged with a bank. I believe more such innovative structures will follow,” says Jaspal Singh Bindra, executive chairman, Centrum Group and former Asia-Pacific head of Standard Chartered Bank. He will not tell you if he’s in talks with the like-minded, but a new plot is being scripted. The blowout at Infrastructure Leasing & Financial Services (IL&FS), the ensuing liquidity crunch, tighter central bank oversight on NBFCs’ liquidity and businesses, and pressure from