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Global PEs bullish on India credit business even as NBFCs feel the pinch

NBFCs have been battling liquidity issues since the IL&FS defaulted in August last year.

NBFCs
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Raghavendra Kamath Mumbai
Global private equity fund managers such as Brookfield Asset Management and KKR are bullish about the credit business in the country at a time when non-banking financial companies (NBFCs) are going through a severe liquidity crunch.

NBFCs have been battling liquidity issues since the IL&FS defaulted in August last year. They have been raising funds overseas, selling mortgaged assets, among others, to shore up their balance sheets and correct asset-liability mismatch. Loan sanctions by NBFCs have fallen 31 per cent in the fourth quarter of FY19 due to a crisis in the sector. 

Canada’s Brookfield, which runs an alternative investment

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First Published: Jun 27 2019 | 12:29 AM IST

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