Mumbai: India is well poised to grow at 7 per cent, but one needs to be watchful of non-banking finance companies segment which appears to be a lot more fragile now than a year ago due to violent interest rate and liquidity movements during year, billionaire Uday Kotak said in a New Year message to his staff.I do believe that NBFC sector is more fragile than what it was one year ago and therefore one has to watch that space carefully in New Year, Kotak said in a note to employees.
Weve seen challenges to banks balance sheets, 11 public sector banks are under prompt corrective action and all these challenges are still playing out.NBFCs as an industry was shaken in last quarter of 2018 after Infrastructure Leasing Financial Services Ltd (ILFS) defaulted on loans and bond repayments.
That led to a surge in outflow of funds from mutual funds.
Many NBFCs were on verge of default and had to sell assets to remain liquid.