IL&FS crisis: For NBFCs, India's 'Lehman moment' has meant reset of future

India's 'Lehman moment' has meant that the high-teen growth phase for non-banker financers is over

Topics
IL&FS Crisis | Non-Banking Finance Companies | Lehman Brothers

Hamsini Karthik  |  Mumbai 

Two and a half years after the infrastructure behemoth Infra­st­ructure Leasing & Financial Services (IL&FS) plunged into crisis, the collateral damage was widespread across the financial sector. On the whole, the system appears to be far less impacted than anticipated.

If non-banking finance companies (NBFCs) are separately analysed, however, the inference could be very different. For non-banks, the IL&FS crisis was nothing short of India’s Lehman moment, which has for a foreseeable future reset the sector on multiple grounds. Securitisation, or monetising loans by ...

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First Published: Fri, February 26 2021. 06:10 IST
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