InvestorQ : do you think the worst for nbfc is over?
siddharth made post

do you think the worst for nbfc is over?

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krithika Saxena answered.
1 year ago

NBFC crisis started with II&FS defaulting its re-payment to its stakeholders in September 2018. As many corporates, Mutual Funds and Insurance Firms had invested through short-term instruments in IL&FS the ripple effect of liquidity issue can bring down the economic growth of the country. IL&FS has been a blue-chip infrastructure institution till now and this sudden break in re-payment delay that started when IF&LS defaulted five of its obligations since August. Yes Bank, Punjab National Bank, IndusInd Bank and Bank of Baroda are those that have high exposure in IL&FS default, so NBFC can have a cascading effect on these banks and on the public, eventually. Technically, NBFC crisis is yet not over.