India’s leading non-banking finance company, Srei Infrastructure Finance Limited, has said that “The sector which is going through liquidity crisis should be able to raise the resources on a sustained basis.”
In an interview with India’s leading news agency, Press Trust Of India, SREI’s Chairman, Hemant Kanoria, said, “Both the parties, the government and the regulator the Reserve Bank of India (RBI) should come out with more clarity for raising medium-to-long term funds by the non-banking finance companies (NBFCs).”
Speaking with the agency, Kanoria, said, “For non-banking companies, and banks ‘money’ is the basic raw material, and NBFCs should be able to raise the resources on a sustained basis for conducting their business.”
“Raising resources by NBFCs from the public is a limited option and done from time to time, depending on the profile of the NBFC concerned, which is a main structural issue that needs to be addressed,” he said.
Commenting on the funding made by NBFCs, Kanoria to the agency, “The government has taken some steps to address the liquidity issue through the partial guarantee scheme for interim funding.”
“The funding has become sluggish, and this has affected the credit offtake and flow of loans to infrastructure and the MSME sector.”