The NBFC segment has been facing trouble since the collapse of the infra-focused IL&FS in September 2018
The windfall treasury profits come as a relief for lenders staring at a potential surge in bad loan provisions due to a slowing economy and a cash squeeze in the nation's shadow banking system
Industry's appetite for loans had waned, but banks left even those wanting to invest credit-starved
The overall slowdown in the economy plus lending to the now problematic real estate sector will impact the asset quality of the non-banking institutions
A few quarters of pain in sectors that depend upon shadow financing is a small price to pay to produce a sector that winds up doing its job efficiently and sustainably
Moody's said it expects growth to be 'weaker' in the next 12-18 months, without quantifying its growth expectation
The overseas investors could also step in to fill the financing void left by the non-bank lenders
"We have to only see our domestic demand continues to be robust and ensure that there is a domestic demand revival and that remains strong"
They are poised to benefit from lower interest rates and can grab market share
The net interest income of the lender stood at Rs 13,294.3 crore in Q1FY20, up from Rs 10,813.6 crore in the year-ago quarter, registering a growth rate of 23%
MF holding in CPs stood at Rs 3.7 trillion in June, as against Rs 4.3 trillion in May
Experts said while market perception on NBFCs remains weak, new valuation norms for liquid schemes have also contributed to the fall in MF funding
In the June quarter of FY20, the securitisation volume stood at Rs 50,300 crore, as opposed to Rs 32,300 crore in the same quarter in the preceding financial year
After the customary post-budget meeting with Finance Minister Nirmala Sitharaman, he said the system has sufficient liquidity and the Budget for 2019-20 has made provision for NBFC sector
The government will allow NBFCs to raise funds in public issues
Government will encourage PSBs to buy high-rated pooled assets of up to Rs 1 trn of good credit firms
The NBFCs must make arrangements to improve the liquidity position to prevent further defaults
Recycling assets - selling brownfield projects and investing the proceeds in greenfield projects - is India's best bet for growth revival
Measures taken to strengthen the financial system are partially responsible for the debt crisis
The government does not have any plans to infuse funds in privately-held shadow banks, FM Sitharaman said