‘NBFC have made adequate arrangements, don’t expect bad debts to leap forward’
Non-bank financial corporations (NBFCs) have already set aside provisions for non-performing assets and do not expect a sharp rise in bad debts following the Supreme Court verdict.
“Most companies were already making arrangements for. We were all prepared and we don’t see a quantum leap or significant change happening to that extent, ”said Raman Aggarwal, IFCD co-chair and independent director of Paisalo Digital, on Wednesday.
Responding to questions at a virtual press meeting by the Financial Industry Development Council (IFCD), NBFCs said they have made arrangements for APMs, but hope that further assistance will be provided by the Center.
Most NBFCs and lenders have already requested the first round of borrower relief, they said, adding that they have yet to get it.
“This is a gratis repair, we have filed our complaints,” Aggarwal explained.
Meanwhile, the NBFCs have also reported improved collections and continued demand after the Covid-19 pandemic and the lockdown.
“NBFCs are properly capitalized, although there may be pressures on small businesses,” said Ramesh Iyer, President, FIDC, VC and MD, Mahindra Finance, adding that the collections have also improved on a monthly basis. .
The IFCD also made suggestions on the Reserve Bank of India’s discussion paper on the revised regulatory framework for NBFCs.
“The IFCD welcomes the multi-level approach,” said KV Srinivasan, director and CEO of Profectus Capital, adding that she had highlighted the issue of smaller NBFCs and minimum capital requirements.
“Based on the increase in prices, real GDP and regulatory judgment, the entry point standards will be revised from ₹ 2 crore to ₹ 20 crore,” the minimum net fund discussion paper had proposed. inmates.
Srinivasan said it had been suggested that this should be extended and that companies with capital below ₹ 2 crore should be given enough time to meet the threshold.