Tag: non-banking financial companies (NBFCs)

RBI’s guidelines don’t impact HFCs materially, says Indiabulls’ Gagan Banga

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) has released a new set of directions related to maintenance of liquidity coverage ratio, risk management, asset classification and loan-to-value ratio, among others, for housing finance companies (HFCS).

These measures, which were announced in October 2020, have come into effect as of now. Gagan Banga, Vice Chairman and Managing Director, Indiabulls Housing Finance shared his views and outlook on the same.

“What RBI has effectively done through this is it has harmonized whatever further regulations pertaining to non-banking financial companies (NBFCs) and HFCs wherever there was a gap,” he said.

“Most large HFCs would be much larger, nothing in this is disruptive for the large HFCs, specifically for Indiabulls Group, etc it is not even relevant,” he added.

“We do not lend to our group entities. From a more general reaction to that, 15 percent and 25 percent or most things that are there in the compiled circular are already in play,” he said.

The company has cash covering almost the next one year of repayments as against 50 percent of the next 30 days that is being prescribed by the regulator, he said.

According to him, whatever the RBI is doing for the last one to one and a half years is firmly taking grip of the housing finance sector and strengthening its grip on the wider NBFC sector.

In terms of Sameer Gehlaut’s plans, he said, “Sameer Gehlaut is the founder of Indiabulls Housing. He has chosen to dedicate his executive time to Dhani, which is the group’s consumer finance and telemedicine app. He has already indicated two years ago that as far as Indiabulls Housing is concerned, at an appropriate time he is happy to hand over control to an institutional investor and he is happy to remain a minority investor. He is a debt-free individual so he has no requirements to divest. His stake is about 21.5 percent.”

“Over a period of time – we already have close to about 50 percent of the company owned by financial institutions and that is the path that we have to continue to follow,” he said.

As a financial entity, one is always in discussions for various forms of capital. “I don’t have a deal on the table that I can be discussing,” he mentioned.

For more, watch the video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PSU Banks to do well as economy recovers; expect Nifty FY22, FY23 EPS to grow by 20-28%: Kotak Institutional Equities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The macro indicators suggest that the Indian economy is recovering and if the growth sustains, the public sector banks could do well going ahead, said Sanjeev Prasad, Managing Director, Co-Head, Kotak Institutional Equities.

Speaking to CNBC-TV18, Prasad said that the valuations of PSU Banks remain cheap and the State Bank of India (SBI) was his top pick.

“If the economic recovery continues and concerns about credit costs and non-performing loans (NPLs) start reducing, I presume we will see some rerating in multiples of PSU banks and NBFCs,” he said.

Prasad is of the view that the valuations of select non-banking financial companies (NBFCs)were good while rest others remain expensive.

Going ahead, he expects strong earnings recovery with Nifty FY22 and FY23 EPS growth by 20-28 percent.

“On a YoY basis, you will see pretty strong earnings recovery in FY22 and in FY23. We are looking at 20 percent growth for the net profits of Nifty-50 index for FY22 followed by almost 28 percent for FY23,” he said.

For entire discussion, watch video…

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Experts discuss RBI’s recommendations on restructure banking in India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India’s (RBI) working group has made recommendations on ownership of banks with regards to maximum promoter holding, collapsing of holding company structures and allowing more private players, especially larger non-banking financial companies (NBFCs) and corporate housing into banking.

While the proposal of collapsing holding company structures has been welcomed by all, ratings agency S&P Global has warned against the RBI panel’s recommendation to issue bank licences to conglomerates. Similar views were expressed by former RBI governor Raghuram Rajan and former deputy governor Viral Acharya in a joint blog, who warned against NBFC’s owned by corporates. G Padmanabhan, former ED at RBI and Geeta Chugh, Senior Director at S&P Global discussed the way forward.

“We do remain sceptical about awarding new licenses, about allowing corporate ownership in the banks,” Chugh said.

“First concern is corporate governance in India is generally weak. Second concern is regarding conflict of interest, concentration of economic power. Third risk is the risk to financial stability,” she added.

“In our view we do believe that at this point of time allowing corporates to have ownership in the banks has higher risk at this point of time,” she said.

“It will be a very difficult decision because we are comfortable where we are and to open up – there will be more opposition rather than people who support this,” Padmanabhan said.

“We need to accept the fact that the corporate governance in this country is ownership mutual. So there is so much divergence, so much of NPAs have happened, even when we have not given license to the corporate sector. So that is a reality that we must be accepting and we must be able to work with that,” he added.

“Once the corporates are allowed into the NBFCs, it will be better for them to convert them into banks because the supervision is much tighter as far as the banks are concerned. So from that aspect, probably the thinking of the internal working group has been right in saying that they have given NBFC license, they have grown big, so far we have not had any problems, so let us try couple of them as a proof of concern and convert them into banks and see how it works,” he suggested.

For the entire discussion, watch video…

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Flipkart bolsters partnerships with banks, NBFCs ahead of festive season

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Walmart-owned Flipkart on Wednesday said it will offer credit options through 17 banks, NBFCs and fintech players that will drive credit accessibility for customers during the upcoming festive season. Flipkart is ramping up its fintech constructs so that consumers across the country can avail the benefits of easy accessibility to credit and affordability options, a statement said.

Through these partnerships, Flipkart aims to tap into the new-to-credit audience across different geographies and pin codes and offer them access to its over 250 million product offerings on the Flipkart marketplace, it added. “As part of its commitment to be the online destination for affordable shopping for every Indian, Flipkart is offering affordable credit options through 17 leading banks, Non-Banking Financial Companies (NBFCs) and fintech players on the platform, which will drive credit accessibility for over 70 million customers on the platform,” it said.

Flipkart said it has partnered with State Bank of India and with SBI Card to provide debit and credit cards holders a 10 percent instant discount, while No Cost EMI will be available for Bajaj Finserv EMI card holders, it added. With the launch of Kotak Mahindra Bank and Federal Bank Debit Card EMI payment option, customers can now avail pre-approved credit from seven banking and fintech players.

Flipkart said it is also launching a Gift Card Store catering to customer needs across 60 brands such as Joyalukkas, Kalyan Jewellers, Croma, FabIndia and KFC among others. “By facilitating credit and insurance access, and simplifying payments for over 250 million customers across the country, we are reinforcing our commitment to helping fulfill their aspirations without the burden of financial constraints. Through these partnerships and their expansion, we hope to take the promise of The Big Billion Days to more customers to enable meaningful growth,” Flipkart Head Fintech and Payments Group Ranjith Boyanapalli said.

Also Read: Amazon’s Great Indian Festival to bring cheer to small and medium businesses

E-commerce companies see a large chunk of their business coming in during the festive sales and they make significant investments ahead of time to ramp up their capacity to be able to handle the spike in orders. Electronics, fashion and home furnishing are some of the categories that see huge demand during the festive season.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PSBs buy Rs 14,667 cr of bonds, CPs of 67 NBFCs under credit scheme

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Public sector banks (PSBs) have purchased bonds and commercial papers worth Rs 14,667 crore issued by 67 NBFCs under the revamped Partial Credit Guarantee Scheme (PCGS), Finance Minister Nirmala Sitharaman said on Wednesday.

As part of the nearly Rs 21 lakh crore special economic package amid the COVID-19 crisis, Sitharaman announced Partial Credit Guarantee Scheme (PCGS) 2.0 worth Rs 45,000 crore for non-banking financial companies (NBFCs) and micro finance institutions (MFIs).

“As of 10 July 2020, under the extended PCGS, #PSBs have approved for purchase Bonds/Commercial Papers issued by 67 NBFCs amounting to Rs 14,667 crore, of which Rs 6,845 crore is for Bonds/CPs rated below AA, providing liquidity support to NBFCs with lower rated Bonds/CPs,” Sitharaman said in a tweet.

The purchase of bonds/commercial papers of Rs 6,125 crore, including Rs 5,550 crore of bonds/commercial papers (CP) rated below AA, is currently under various stages of approval/at negotiation stage, she added.

“The Partial Credit Guarantee Scheme (PCGS) was revamped under the #AatmanirbharBharat Package to support the liability side of NBFCs by providing a 20% portfolio guarantee to public sector banks for the purchase of Bonds/Commercial Papers rated AA and below issued by NBFCs,” she said.

Taking the lead, 23 NBFCs from the southern region sold bonds and or CP worth Rs 5,710 crore. It was followed by the western region with 29 NBFCs issuing papers to the tune of Rs 4,540 crore as of July 10.

The Union Cabinet on May 20 approved the sovereign portfolio guarantee of up to 20 per cent of the first loss for purchase of Bonds or Commercial Papers with a rating of AA and below including unrated paper with original or initial maturity of up to one year issued by NBFCs/HFCs/MFIs by public sector banks through an extension of PCGS.

The Cabinet also extended the time period of the scheme from June 30, 2020, to March 31, 2021, for purchase of pooled assets of the distressed entities.

As per the modification, NBFCs/HFCs which have reported under Special Mention Account (SMA-1) category on technical reasons alone during the last one year period prior to August 1, 2018 will be eligible for benefit under the scheme.

Earlier NBFCs/HFCs reported as SMA-1 or SMA-2 during the specified period were ineligible.

The SMA-1 refers to those accounts where the principal or interest payment remains overdue between 31-60 days, while SMA-2 pertains to those where the overdue period is between 61-90 days.

Since NBFCs, HFCs and MFIs play a crucial role in sustaining consumption demand as well as capital formation in the small and medium segment, it is essential that they continue to get funding without disruption, and the extended PCGS is expected to systematically enable the same.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Govt eases norms of partial credit guarantee scheme to help NBFCs, HFCs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Cabinet on Wednesday relaxed the norms of the Partial Credit Guarantee Scheme and extended its time period in order to widen the coverage to include a larger number of NBFCs, HFCs and micro finance institutions.

As part of the Rs 21 lakh crore special economic package amid the COVID-19 crisis, Finance Minister Nirmala Sitharaman last week announced Partial Credit Guarantee Scheme (PCGS) 2.0 worth Rs 45,000 crore for non banking financial companies (NBFCs) and micro finance institutions (MFIs).

Under the modified PCGS, sovereign guarantee of up to 20 percent of first loss will be provided to state-owned banks for purchase of bonds or commercial papers of NBFCs, MFIs and housing finance companies (HFCs) having a credit rating of AA or below, including unrated paper with original maturity of up to one year.

The Cabinet has also extended the time period of the scheme from June 30, 2020 to March 31, 2021 for purchase of pooled assets of the distressed entities.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Sovereign portfolio guarantee of up to 20 percent of first loss for purchase of Bonds or Commercial Papers with a rating of AA and below (including unrated paper with original/ initial maturity of up to one year) issued by NBFCs/HFCs/MFIs by public sector banks through an extension of PCGS,” said an official release.

As per the modification, NBFCs/HFCs which have reported under Special Mention Account (SMA-1) category on technical reasons alone during the last one year period prior to August 1, 2018 will be eligible for benefit under the scheme.

Earlier NBFCs/HFCs reported as SMA-1 or SMA-2 during the specified period were ineligible.

The SMA-1 refers to those accounts where the principal or interest payment remains overdue between 31-60 days, while SMA-2 pertains to those where the overdue period is between 61-90 days.

The government has also relaxed the net profit criteria under the scheme. Henceforth the entities which have made net profit in at least one of the three financial years of 2017-8, 2018-19 and 2019-20 will be eligible. Earlier, entities which made a net profit in 2017-18 or 2018-19 were only eligible.

The existing PCGS, it may be mentioned, was issued on December 11, 2019 offering sovereign guarantee of up to 10 per cent of first loss to PSBs for purchasing pooled assets rated BBB+ or above up to Rs 1 lakh crore, from financially sound NBFCs.

The outbreak of COVID-19 along with lockdown of business activity has now necessitated adoption of additional measures to support NBFCs and HFCs, said the release, adding the modifications will enable wider coverage of the scheme .

Since NBFCs, HFCs and MFIs play a crucial role in sustaining consumption demand as well as capital formation in small and medium segment, it is essential that they continue to get funding without disruption, and the extended PCGS is expected to systematically enable the same, it added.

The release said the lockdown restrictions are likely to have a negative impact on both collections and fresh loan disbursements, besides a deleterious effect on the overall economy.

This is anticipated to result not only in asset quality issues for the NBFC/ HFC/ MFI sector, but also low loan growth as well as higher borrowing costs for the sector, with a cascading effect on Micro, Small and Medium Enterprises (MSMEs) which borrow from them, it said.

“While the RBI moratorium provides some relief on the assets side, it is on the liabilities side that the sector is likely to face increasing challenges. The extension of the existing scheme will address the liability side concerns,” it said.

In addition, modifications in the existing PCGS will enable wider coverage of the scheme on the asset side also.

Since NBFCs, HFCs and MFIs play a crucial role in sustaining consumption demand as well as capital formation in small and medium segment, it is essential that they continue to get funding without disruption, and the extended PCGS is expected to systematically enable the same, the release added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SBI’s move to cut interest rate on savings deposits will help lender save funds, says MD Dinesh Khara

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State Bank of India (SBI) cut interest rates on savings accounts recently. Dinesh Kumar Khara, Managing Director of SBI) shared his views on how the move would help the lender.

“This reduction in savings rate will help us reduce cost of funds almost to the extent of 6-7 basis points (bps),” Khara said.

Speaking about the eligibility of non-banking financial companies’ (NBFCs) for availing the moratorium on repayments, he said, “At the IBA level, we are evaluating the aspect. Once we have clarity on the matter we will make an announcement. Apart from other things we will provide any kind of support NBFCs require, be it some kind of loan or anything — moratorium or no moratorium — we will look into their needs. We are evaluating various available options as well.”

When asked would NBFCs get the Targeted Long-term Repo Operation (TLTRO) money, he replied, “They are very much there in the reckoning. However, demand seems to be much higher. TLTRO is intended for about Rs 1 lakh crore. Two tranches have already been done. I think all banks are looking at it and we have to keep in mind that many NBFCs which are at the lower end, may not be raising much of the money from the market. So TLTRO is not the only solution for NBFCs. Other solutions involves things like raising short-term loans etc, which would involve some kind of evaluation of the credit risk of NBFCs.”

In terms of net interest margins (NIMs), Khara said, “We hope to maintain our margins. As far as our liquidity position is concerned, it is comfortable for us.”

On non-performing assets (NPAs) impact on Q4, he mentioned, “Some bit of recovery depends on follow-up that has been maintained. We will have to wait and watch as these are early days. All of us are adjusting to the new paradigm and hopefully we will have some visibility in some time to go.”

When asked about what according to him is the biggest challenge for SBI and the banking sector in case the lockdown due to coronavirus is extended in key cities, Khara stated, “We are very closely monitoring the situation and we are only trying to see that we are on the top of the situation.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 is resetting the world, says Enam’s Vallabh Bhanshali

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The world has taken a huge blow as it battles the COVID-19 pandemic and economists suggest that India’s FY21 gross domestic product (GDP) growth could fall to as low as 2.5 percent.

Chairman at Enam Securities Vallabh Bhanshali, former economic affairs secretary SC Garg and Arnab Das of Invesco shared their views on what economic policies are needed when the lockdown ends. They discussed the topics such as the help banks, non-banking financial companies (NBFCs) and manufacturing industries would require and the global scenario in FY21.

Here’s what the trio had to say:

“These are extraordinary times. We have been going over the last four-five years through extraordinary reforms with regards to business processes, the way we look at ourselves and set our priorities. In that process, COVID-19 could not have come at a worst time. Yet, I feel when I look at some of the valuations in the market and how efficiency, governance, etc. are being valued and how companies are able to grow, I think there is some glimmer of hope. I think COVID-19 is resetting the world and when the world resets, and you have a lot of the reform already out of the way, we can begin anew,” said Bhanshali.

Speaking about Indian enterprises to come back in a big way, he added, “In a pandemic, there are a lot of unfortunate losses – losses of lives and financial losses, but you have a kind of slate just as you see clean skies today. Enterprises cannot be held back; India is full of enterprises and those enterprises will come back roaring. The Railways is making ventilators, a company in Rajkot is making a ventilator for Rs 1 lakh – from nowhere these things are happening.

“I think therefore that spirit, the whole enterprise engine, I think it is going to come back gushing big time. So, I cannot see the granularity of it, but I definitely see it as a wave happening and that India will come out of it just as I expect the world to come out of it.”

Next Garg spoke of timing of reforms. He stressed, “This is not the time for a reform. Reforms are advisable and a lot of that would be needed, but first we need to deal with the epidemic, the crisis, which has come on account of the epidemic. The economy has been locked down, that is what is required to be handled first and along with that we will need further reforms.”

When asked if the lockdown needs to be staggered in terms of its removal, Garg replied, “The lockdown – we are not fully aware and conscious of the cost of it. You have said, people are saying that the economy will lose or will grow at a less rate of about 2-3 percent, I see it very differently. If currently our 60-70 percent of the economy is not functioning and we produce about 8-9 percent of GDP in a month, I suspect that in the month of April – first 15 days – we would have lost 3-4 percent of the GDP already.

“If this continues as it is then we will lose that pace and therefore the decision regarding phasing in of the economy after April 14 must be considered taking this into account. On one side you have the risk of COVID-19 and this is a real risk but at the same time, you have to also manage to put the economy back on track. That would require a judgement to be applied and balancing of the risk as well as the advantage of the opening of the economy.”

Lastly, Arnab Das said, “It is going to take time for the world economy to recover its poise. I suppose what is going to happen is a series of gradual sequence of removals of these lockdowns because different countries has entered into the pandemic and into the lockdown at different times at different intensities and rates.

“Also there is very important risk of a second wave and you see the emergence of a potential second wave in Japan, some indications in that direction in China itself. So you see some lockdown starting to come back in in some places. So I think it is going to be quite complicated exiting from these lockdowns. It is going to be a much more gradual and sequenced kind of emergence from the lockdowns.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI needs to keep power ready to buy corporate bonds, says former RBI deputy governor HR Khan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The 3-month moratorium for term loans given by the Reserve Bank of India (RBI) has created an asset-liability mismatch (ALM) at the non-banking financial companies (NBFCs)-end. Their customers now have the option to defer the equated monthly installments (EMIs) by 3 months but the same forbearance is not available for the NBFC’s to service their bonds, debentures and public deposits.

HR Khan, former deputy governor of RBI, Umesh Revankar, MD of Shriram Transport Finance, Sandeep Parekh, founder of Finsec Law Advisors, TT Srinivasaraghavan, managing director of Sundaram Finance and Lakshmi Iyer, CIO, debt and head product, Kotak Mahindra AMC shared their views and outlook on this development.

“Bond has been a reasonably large portion of our liability over the period. Definitely, we need some kind of forbearance in the bond. Public deposit is a very small portion, that we can service, we don’t have much challenge on that. However, capital market through Securities and Exchange Board of India (SEBI), forbearance in the bond market should definitely help us because that is going to be a large chunk in most of the NBFCs,” said Revankar.

“Apart from the bonds, there is also the securitized paper and the direct assignments where we as NBFCs don’t have the right because we no longer are the owners of these assets. So the trustees or the guys who have bought the paper have to authorize us to extend this moratorium, if we ask for it. So Umesh Revankar is right, bank borrowing – at best – is between 30 percent and 40 percent for many NBFCs and the balance does come from bonds and from securitization, ” said Srinivasraghavan.

“So, we clearly do need an answer to this. Of course, we have sent this representation to the RBI as well as to the ministry and we are awaiting a response. We said just like you have done for bank loans, give us the same forbearance on payment of interest of bonds and similarly, for securitized paper,” Srinivasaraghavan added.

Giving his take on this, Parekh said, “The issue is pretty extraordinary because under the contract, I don’t think there are any periods during which you can stop payments without being called a defaulter. People are not able to collect money and therefore they are unable to pay money or they could have logistical issues as well in terms of people going to the office and making the payments etc.”

“These are times, which require extraordinary measures so that we don’t set off a chain reaction of defaults and starting from the credit markets to the debt markets, which the NBFCs use. There has to be a significant effort to ensure that these short-term non-defaults are not considered as defaults. SEBI and RBI probably have to work closely together and we are seeing both of them working very hard in terms of giving various types of forbearances,” added Parekh.

When asked if interest payment’s postponement on debentures and bonds will disrupt mutual funds or some investors, Iyer replied, “It is a difficult and a tricky situation right now, which is why probably capital market instruments have been exempted from this forbearance at this point in time.”

“While mutual funds don’t follow ALM, we have bucketing of maturities and interest payments, which are part of the cashflow cycle. So, it is important that one takes in consideration all of these. The LTRO seems to be one potent solution for most such NBFCs or other entities where they can avail a line of finance or refinance in case if they have to service the capital market entities because it will pose huge hurdles from managing our own liabilities, which are with investors,” said Iyer.

“This is very unprecedented and exceptional situation. One thing, which we have learnt in the global crisis of 2008-2009, is ‘never say never to anything’. My suggestion would be that let us not go to that drastic step where there are so many other consequences like people not getting interest for an investment. The whole idea is to provide line of credit to NBFCs has tide over this problem. The issue is that this LTRO first tranche has gone and how much of that is getting distributed to these NBFCs has to be seen and the second tranches should happen quickly,” said Khan.

“Some of the NBFCs post RBI’s ALM circular have got cash. That cash also they can use. It is not that they are not having cash, some of them are holding cash and the third is the Brahmastra of RBI buying corporate paper. That was one of the recommendations, which we had made in the inter-regulatory group. Time has come to look at it very closely if banks are not willing to take credit risks, maybe high quality paper RBI should look at,” added Khan.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow