NBFCs stare at 30-70% fall in FY21 earnings due to coronavirus pandemic

Back in 2018, when the IL&FS fiasco happened, non-banking financial companies (NBFCs) as a measure of prudence decided to conserve capital and go slow on lending. What followed was economic weakness. But, just when the sector was neatly shoring up their liabilities profile, which positioned NBFCs stronger than earlier, the economic halt because of the coronavirus outbreak may have changed the narrative again. 

According to an Edelweiss report, Rs 1-trillion non-convertible dentures (NCDs) and Rs 1.2 -trillion commercial papers (CPs) are due for maturity in May and June. Clearly, Rs 50,000 crore set aside as targeted long-term repo operation (TLTRO)