Cash-dependent finance firms may stay stressed

Analysts are turning cautious on NBFCs, particularly rural and cash-leaning entities

Hamsini Karthik  |  Mumbai 

The popular belief is that India is well past the demonetisation disruption. Among many indicators, the performance of a few non-banking financial companies (NBFCs) in December quarter tempted investors to believe that the note ban’s impact on the financial system was lesser than expected. But, as the Reserve Bank of India’s dispensation on bad-loan recognition faded out in March quarter (Q4), it appears that the Street’s cheer on certain cash-dependent NBFCs was perhaps early. Apart from demonetisation, state election in Uttar Pradesh (UP) and mayoral polls in Maharashtra ...

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Read our full coverage on Demonetisation

Cash-dependent finance firms may stay stressed

Analysts are turning cautious on NBFCs, particularly rural and cash-leaning entities

Analysts are turning cautious on NBFCs, particularly rural and cash-leaning entities The popular belief is that India is well past the demonetisation disruption. Among many indicators, the performance of a few non-banking financial companies (NBFCs) in December quarter tempted investors to believe that the note ban’s impact on the financial system was lesser than expected. But, as the Reserve Bank of India’s dispensation on bad-loan recognition faded out in March quarter (Q4), it appears that the Street’s cheer on certain cash-dependent NBFCs was perhaps early. Apart from demonetisation, state election in Uttar Pradesh (UP) and mayoral polls in Maharashtra ... image
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