InvestorQ : What will be an impact on NBFC who has done borrowings from Bank
Nitin Jalota made post

What will be an impact on NBFC who has done borrowings from Bank

Answer
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Dhwani Mehta answered.
5 months ago


That is a major area of confusions at this point of time. RBI has not offered the facility of 3 month moratorium to NBFCs that have borrowed from banks. NBFCs are not too clear on whether they are eligible for the moratorium. Mutual funds are seeking clarity from RBI and SEBI on how to treat the NBFC CP and NCDs that mutual funds have invested in during the coming 3 month lockdown period. SEBI has asked rating agencies to go slow on downgrades considering the delicate economic situation. At this point of time there is no clarity but the reality is that there is nearly Rs.250,000 crore of NCDs and CP issued by NBFCs that are maturing in April and May. That needs to be handles on a priority basis.