NBFCs should raise resources on sustained basis: Srei''s chief
The government and the regulator, Reserve Bank ofIndia (RBI), should come out with more clarity for raisingmedium-to-long-term funds by the non-banking finance companies(NBFCs), the firm's chairman Hemant Kanoria said.
"The basic raw material for the non-banking financecompanies and banks, is money. The NBFCs should be able toraise resources on a sustained basis for conducting theirbusinesses," Kanoria told .
In a bid to address the liquidity issue, thegovernment has taken some steps through the "partial guaranteescheme" for interim funding.
"Raising resources by NBFCs from the public is alimited option and done from time to time. It depends on theprofile of the NBFC concerned. The main structural issue needsto be addressed," Kanoria said.
Talking about the city-based company, he said lendingactivity is getting affected due to liquidity issues.
"Funding has become very slow. This has affectedcredit offtake and flow of loans to infrastructure and theMSME sector. However, equipment finance is slowly picking up,"he said.Regarding the outlook for the current fiscal endingMarch 31, 2020, Kanoria said that the growth in terms ofdisbursement will be muted, but the company will remainprofitable." dcBDC BDC
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)