NBFCs may run into choppy waters as market dries up, interest rates rise

The general nervousness because of the IL&FS default will prevail in the system for now, says Naresh Takkar, Managing Director and group CEO of Icra

Non-banking finance companies (NBFCs), especially housing finance companies (HFCs), could be in for a rough ride in terms of fund-raising plans, as market dries up and interest rates rise. 

The sharp fall in stocks of major HFCs on Friday, led by DHFL, have clearly shaken the nerves of investors. Kapil Wadhawan, Chairman and Managing Director of DHFL, said in an interview with Business Standard that about 60 per cent of the fall in stock was an effect of contagion of the IL&FS sentiment.

“I am sure this has to do with the contagion effect in the market because of the IL&FS issue,”