InvestorQ : How does the SBI extending moratorium benefit to NBFCs impact the NBFCs like HDFC and Bajaj Finance?
Dhwani Mehta made post

How does the SBI extending moratorium benefit to NBFCs impact the NBFCs like HDFC and Bajaj Finance?

Answer
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Khushi Patel answered.
5 months ago


This may impact the smaller NBFCs rather than the likes of HDFC and Bajaj Finance which anyways have access to market funds. State Bank of India has decided to extend the loan moratorium for NBFCs and MFIs for another 3 months beyond May 31, when the moratorium expires. NBFCs and MFIs owe Rs.200,000 crore to the banks. However, such extension of moratorium will only be done in the event of the NBFC having genuine cash flow problems. With SBI taking the lead, other commercial banks are also expected to follow suit. In the last few years, bank funding has become the biggest source of liquidity for non banking finance companies (NBFCs) and also for micro finance institutions (MFIs). This would come as a huge relief to these financial entities that are struggling to raise liquidity.