The ongoing crisis in non-banking finance companies (NBFC) is related to specific companies and not for the sector as a whole but the time being taken to resolve the issue is becoming a matter of concern, said Amitabh Chaudhry, Managing Director and Chief Executive Officer of Axis Bank.”Crisis is right now related to specific companies with asset-liability mismatch or where people are raising questions about asset quality. There are enough NBFCs with no issues. While it is not a systemic issue, the worry is that it will take time to resolve,” Chaudhry said.Chaudhry said that promoters of NBFCs that are in need of capital should look at bringing in equity infusion without further delay. He added that relying on regulatory and government intervention to bail out sick NBFCs would seem unfair.Close In the Financial Stability Report released in June, the Reserve Bank of India (RBI) said that in case of further stress, around eight percent of NBFCs will fail to maintain the minimum regulatory capital requirements. related news Dow hit by losses in Boeing, Home Depot; S&P 500, Nasdaq edge higher Indian banks argue for UK court to declare Vijay Mallya bankrupt Gold futures rise marginally before Fed’s rate decision; retail price down Rs… Read full this story
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NBFC crisis not a systemic issue but may take time to resolve: Amitabh Chaudhry, Axis Bank MD have 322 words, post on www.moneycontrol.com at July 11, 2019. This is cached page on The World Articles. If you want remove this page, please contact us.