INSUBCONTINENT EXCLUSIVE:
MUMBAI: French bank BNP Paribas has scrapped its plans to launch its auto and consumer lending businesses under its subsidiary Sharekhan
Financial Services following the liquidity crisis in the non-banking financial services sector
The lender, which had hired over 100 people for the new businesses, is looking to sell these units, said two people familiar with the
matter.
Sharekhan Financial Services is a wholly-owned finance company of broking firm Sharekhan, which BNP had acquired two years ago
Sharekhan Financial offers margin funding, loan against shares and ESOP funding to clients and rich individuals.
After BNP bought out
But, the recent liquidity crisis triggered by the ILFS fiasco prompted the French bank to have second thoughts about launching the auto and
quoted above.
Sharekhan Financial will continue to focus on its stock market-related financing business, the person said
BNP has put the auto and consumer financing units on sale and is in the process of finding a buyer
Several NBFCs have been dragged down by the liquidity crisis, which has forced many in the industry to limit lending
Many of these finance companies have been looking to shore up cash reserves after ILFS defaulted to mutual funds, perceived to be the main
when we believe they are in the best interests of our clients and may be supported sustainably over time by our Group
We are constantly exploring new solutions that will deliver benefits to our Sharekhan clients as part of our ongoing sustainable commitment
