Letter to BS: One of the reasons for slowdown is problems in NBFC sector

The problems of these institutions won't go away immediately, but timely proactive steps will limit the damage they cause to financial system.

This refer to "What next, Reliance Home Finance?" (January 20). If Reliance Home Finance goes bust it will be in a long line of NBFCs/HFCs, namely, IL&FS, Altico, Reliance Capital, DHFL, DHIL to have gone that way. Many of them have diverted bank funds to either group companies or related ones. Some of them have lent for infrastructure without carrying out due diligence and with disregard to their asset-liability structures.  One of the reasons for the downturn in the Indian economy is problems in the NBFC/HFC sector. The bad news there doesn’t seem to end. Since banks have lent to