Representatives from NBFCs and housing finance companies met Prime Minister Narendra Modi here on December 26, 2018 and gave suggestions on how to revive the sector facing liquidity issues, especially after debt defaults by crisis-hit IL&FS. Concerns on this front has been looming after Il & FS defaulted on a series of debt payments raising concerns that default by a large non-banking finance company (NBFC) would create liquidity crunch in the financial market. The prime minister met Adita Birla Capital’s MD Ajay Srinivasan, Indiabulls Group’s chairman Sameer Gehlaut, Dewan Housing Finance chairman Kapil Wadhawan, Shriram Transport Finance MD Umesh Revankar, SREI Infrastructure’s Sunil Kanoria and L&T Finance MD Dinanath Dubhashi.
Assocham President B K Goenka went on to comment , “After the IL&FS crisis, the government has taken many positive steps but as an industry, through Assocham, we were trying to give a message that those steps were not enough, and accordingly, we had to bring it at the highest level.”
“The liability side of NBFC balance sheets needs to be looked at and funding avenues need to be opened”, remarked Ramesh Agarwal, Chairman of FIDC, an umbrella body for NBFCs.
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