No Liquidity Squeeze In NBFC Sector, Says SBI Chairman Rajnish Kumar

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    On Thursday, leading public sector bank's Chairman Rajnish Kumar asserted that the NBFC sector is not reeling under liquidity crisis. The comments come amid a rift between RBI and the centre over the liquidity issue.

    No Liquidity Squeeze In NBFC Sector, Says SBI Chairman Rajnish Kumar
     

    "There is no liquidity crisis in the NBFC sector... Rollovers have been successful and all of them have been able to meet their commitments as far as their obligations are concerned," the chairman said.

    On one hand, the RBI maintains that the sector is not under any such pressure while the government is firm on its stand that the financial sector is under severe stress post infrastructure financing company's fall-out i.e. IL&FS default against its payment obligations.

    Nonetheless, the RBI assures the government to step in as and when required and address liquidity issue while it has asked for data from the government on the basis of which it calls the situation a crisis for the financial sector.

    "Share the data with us (regarding crunch in NBFCs)... The liquidity situation is not as bad as it is being projected to be," the RBI asked the government.

    RBI has scheduled a board meeting on November 19 to work out simpler lending guidelines for the MSME sector as well as ease liquidity issues for NBFCs.

    Recently, SBI had agreed to buy loan assets worth Rs 20,000 - Rs 30,000 crore from NBFCs. The bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year which is now being enhanced," SBI said in a statement.

    Goodreturns.in

    Read more about: sbi rajnish kumar nbfc msme liquidity
    Story first published: Thursday, November 15, 2018, 16:08 [IST]
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