20% reduction in funds provided by NBFC to the commercial sector

Mumbai, Ta. August 30, 2019, Friday

Credit and liquidity tensions in the country's non-banking financial companies (NBFCs) could hamper the process of establishing financial stability, the Reserve Bank's annual report says. Overall demand in the economy is declining. The annual report claims that the RBI is considering this concern.

The lending by the non-banking finance company (NBFC) to the commercial sector (commercial sector) has declined by 5% in the last fiscal year, according to the Reserve Bank's annual report.

According to the data released in the Annual Report, NBFC has given Rs. 8.5 trillion was financed which was Rs. Was 1.8 trillion.

India's macroeconomic stability is providing a ray of hope. But it is not certain that this stability will diminish the impact of the decline in activity or that it is signaling a slowdown.

Due to the challenges raised by the IL&FS Chapter due to the NBFC sector, the credit flow from the NBFC sector to the commercial sector has decreased by about 20% in FY'6. Due to the IL&FS chapter, NBFCs have had a hard time tolerating heavy liquidity.

Stressful weather on credit and liquidity fronts has adversely affected the NBFC in the country's financial sector. The issue has also been considered by the Reserve Bank.

The negative outlook arising after the collapse of IL&FS was adversely affected by the NBFCs and their credit has also declined. Following the episode of IL&FS, housing finance companies along with NBFCs and mutual funds also created a hostile environment.


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