NBFC crisis has peaked but not ended yet: Finance Minister

New Delhi: Finance Minister Nirmala Sitharaman on Saturday said the non-banking finance company (NBFC) sector crisis has plateaued but not ended yet and her ministry will monitor the emerging situation with the RBI, a day after she announced a slew of measures to address the lending concerns of the NBFCs.
“The assessment and inputs that are coming about NBFCs… since it is caused by various different factors like liquidity, governance or insolvency, largely it (the NBFC crisis) reached a peak in terms of challenges that they are facing… the problem probably is not over yet but it can only plateau, rather than worsen even if you want to put it at the worst. The deteriorating situation has bottomed out,” she said in a post-Budget interaction.
Sitharaman said the NBFC crisis might improve after some time and the process is on.
“If anything, it can only now improve or it is going to plateau for some time and then probably improve. So the picture that’s given to me that it is bottomed out…,” she said.
The Finance Ministry would monitor the emerging situation along with the Reserve Bank of India in the coming times and the Budget has addressed the issue of NBFCs adequately, she added.
“We have come up with comprehensive solutions in the Budget. We shall be closely monitoring with the RBI to see how it (the situation) is moving so strictly speaking, I feel the NBFC issue has been addressed,” she said, while asserting that it should not be seen as being ended.