RBI closely monitoring 50 NBFCs for signs of contagion
India’s <a href="http://realtyplusmag.com/central-bank-to-raise-up-to-%e2%82%b9270-crore-by-issuing-shares-to-employees-2/">central bank</a> is seeing “signs of fragility” in some of the 50 mortgage lenders and other shadow banks it is monitoring to prevent the spread of a crisis that followed the c
Published -
Jul 23, 2019 2:18 PM
India’s central bank is seeing “signs of fragility” in some of the 50 mortgage lenders and other shadow banks it is monitoring to prevent the spread of a crisis that followed the collapse of a non-bank lender last year. “It is our endeavor that there is no contagion,” central bank Governor Shaktikanta Das said in one of his first media interviews on Saturday. "We are constantly in touch with the large lenders. Such non-banking finance companies including housing finance companies, where we see some signs of fragility." Just as they emerge from the worst bad-loan problem in two decades, India’s banks are staring at another potential surge in soured debt as a result of their exposure to troubled non-banking finance companies. In its latest Financial Stability Report, the Reserve Bank of India warned that any failure among the largest of the non-bank finance companies or housing finance firms could cause losses comparable to a major bank collapse. .
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