NBFCs delink from housing finance companies
Non-banking finance companies (NBFCs) have sought to distance themselves from housing finance companies (HFCs), which are facing stress, and infra lenders like the troubled IL&FS group. An industry body has said that the sector is neither overleveraged or stressed and nor does it have an asset-liability mismatch. The industry association has sought recognition for NBFCs as partners of banks, helping them lend to the priority sector.
Representatives of the NBFC sector from various finance groups — including Mahindra & Mahindra Finance, SREI, Shriram Transport Finance, Sundaram Finance and Muthoot Group — in a joint press conference under the aegis of Finance Industry Development Council (FIDC) on Tuesday said that the solvency issues faced by some institutions were being hyped as a liquidity issue.