Despite the opportunities, KKR has suffered setbacks in India, where a long-running shadow banking crisis followed by the devastation of the pandemic has crippled the economy
The fiscal deficit of the Central government is likely to increase to 6.6 per cent of GDP in FY20/21 and is expected to remain elevated at 5.5 per cent in the following year, says the report
Taking advantage of low rates overseas and relatively relaxed norms by the Reserve Bank of India (RBI), Indian companies are lining up to raise resources abroad
The issue of financial stability in monetary policy has always been an unsettled issue, ever since the global financial crisis
The government, on May 21, had said it will support creating a SPV that will buy such papers from NBFCs
Govt likely to issue clarification to add more borrowers under ECLGS
While bank credit to NBFCs has seen a rise of 30 per cent year on year, credit has mostly flown into larger NBFCs with good parentage and ones with better ALM positions.
The reason we need standardisation is because it will smoothen the process for customers as there won't be any dispute with hospitals, says Bhargav Dasgupta, ICICI Lombard MD & CEO
PE, VC funds domiciled in the island nation on the radar
The meetings were also attended by deputy governors and other senior officers of the central bank, RBI said in a statement on its website
NBFCs may be forced to dig into their cash reserves if systemic liquidity support dries up
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
Most banks are yet to decide on giving moratorium to shadow lenders
It is reassuring to see that the deficit target was kept within expected lines and 10 per cent growth in nominal gross domestic product is projected
The stress in the banks and the NBFCs has led to undermining of confidence in the sector
There is a shift in funding sources for NBFCs at present
The RBI is yet to come out with the reference date for loan accounts less than Rs 1,500 crore
Since Yashwant Sinha emphasised on reducing the government's stake in public sector banks, things have only worsened
The problems of these institutions won't go away immediately, but timely proactive steps will limit the damage they cause to financial system.
This is no default caused by liquidity tightness. It could have been avoided had the loans to group companies not been given. Period.