NBFCs paying more to take the longer route
Saturday, August 10, 2019, 8:31 PM
Cost of funds for non-banking finance-companies is swelling since many of them are shifting towards issuing long-term bonds to diversify their borrowing portfolios and lessen immediate repayment obligations. The NBFC industry is gripped by credit-crisis after IL&FS Group-companies started defaulting on payments in August last-year. Credit from non-bank lenders, which contribute 20% to overall loans in economy, dropped 69% at the end of March.