NBFC, HFC Heads Meet PM Over Liquidity Issues
In a meeting with Prime Minister Narendra Modi on December 26, heads of the non-banking financial companies (NBFCs) and the housing finance companies (HFCs) discussed how to address the liquidity issues looming over the sector. Concerns on this front emerged after IL&FS defaulted on a series of debt repayments.
"After the IL&FS crisis, the government has taken many positive steps. But, those steps were not enough. Now, we had to bring it at the highest level," Assocham President B K Goenka said after the meeting, adding the PM said all necessary measures would be taken to address the industry concerns.
"Today, the problem is risk aversion. Because of one failure, people don't want to lend to NBFCs and HFCs," Banking Secretary Rajiv Kumar said.
"Growth has virtually come to a halt in the last few months in this sector. In order to open that up, you need to bring in confidence," said Srei Infra Finance Vice-Chairman Sunil Kanoria.
With inputs from Housing News