19
Friday
July 2019
8:09 PM IST
News Headlines
India asks Pak to implement ICJ verdict on Jadhav immediately; Imran says shall proceed as per law        Trust vote; Karna assembly adjourned amid din; Guv directs CM to prove majority by Friday 1.30 pm        IT dept attaches assets of Mayawati''s brother, BSP blames BJP govt        33 dead in suspected arson attack on Japan animation studio        Former Pak PM Abbasi arrested over corruption case        Iran Guards say they have seized a ''foreign tanker''        Bayliss replaces Moody as Sunrisers head coach        Rule Change: Chairman of selectors not secy to convene selection committee meeting        Sindhu enters Indonesia Open quarters, Srikanth ousted        Karnataka crisis: Cong leaders speak in divergent voices on SC verdict        MLAS Karnataka crisis: SC says rebel MLAs not to be compelled to take part in Assembly proceedings        US House votes to condemn Prez Trump over his ''racist'' tweets against four non-white Congresswomen        JuD chief Hafiz Saeed arrested on terror financing charges        Israel inks USD 50 mn deal with India to supply complementary Naval MRSAM systems        ICJ orders Pakistan to review Kulbhushan Jadhav''s death sentence; PM hails verdict        Inzamam-ul-Haq will end his term as the chief selector Pakistan's men side        Anish wins 25m rapid fire pistol gold, silver for Esha at Junior World Cup        Dev-led panel frontrunner to pick coach, but no decision before SC hearing        HC pulls up Kerala govt over Munnar encroachments        189 new rail lines under construction: govt        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Imminent crisis in NBFC sector: Corp Affairs Secy
 
New Delhi: There is an "imminent crisis" in the non-banking financial companies (NBFCs) sector as misadventures by some large entities and credit squeeze present a perfect recipe for disaster, a senior government official has said.

In recent months, the country''s financial system has been grappling with multiple woes in the wake of the turmoil at diversified IL&FS group as well as debt defaults by some other large entities. In an interview to PTI, Corporate Affairs Secretary Injeti Srinivas said the NBFC sector is facing issues of credit squeeze, over-leveraging and misadventures by some large entities.

"There is an imminent crisis in the NBFC sector. There is a credit squeeze, over-leveraging, excessive concentration, massive mismatch between assets and liabilities, coupled with some misadventures by some very large entities, which is a perfect recipe for disaster," Srinivas said. However, he added that "responsible" companies are managing the risk well and are not facing such a dire situation.

Srinivas also said corporate governance in India is being put to test. "It is a defining moment. The way things are moving, in the medium to long term it will be for the good. In the short term, there can be turbulence," he said. "If you are responsible, you manage the risks. There are many companies in the country that have strong corporate governance. They take risks but manage them as well.

So, they don''t face such dire situation that some others are facing today," Srinivas said. Amid instances of the situation of non-performing assets (NPAs) being linked to external factors, Srinivas noted that it would not be a convincing explanation. "To say that the situation (NPA) can be attributed entirely to external factors and business risks is not a convincing answer because there is something known as responsible behaviour," he emphasised.

Earlier this month, former Prime Minister Manmohan Singh said the banking sector is "under severe stress" and the way out of "this mess" is to reverse some "gross distortions", work closely with the RBI, re-start the process of credit delivery and ensure sufficient liquidity and cash in circulation. The NPA "scare" has brought lending to a virtual halt, the former prime minister had said, adding that a "one-size-fits-all approach" drove companies into insolvency while demonetisation shut out all sources of informal credit.

However, Finance Minister Arun Jaitley had dismissed the concerns, saying, "When an economist turns into a politician, he loses sense of both economy and politics". "Dr Manmohan Singh left behind in 2014 an economic slowdown, policy paralysis and corruption. He brought down his party to lowest ever strength in Parliament. India was a part of the fragile five. Today he regards the world''s the fastest growing major economy as disastrous," Jaitley had said.


Air India passengers travelling to UAE can now carry 40 kgs of check-in luggage
Huawei planning major job cuts in US: WSJ
China GDP growth slows to 6.2 pc in second quarter
RBI to come out with mobile app for currency notes identification
Nine of top-10 firms lose Rs 88,609 cr in m-cap
Pak, Afghan resume transit treaty negotiations
Blunt talk needed in country today, Murthy says, cites his spat with Sikka
Gadkari appeals to MSMEs to plant trees
Infosys Q1 net grows 5.2 pc to Rs 3,802 cr; ups revenue guidance to 8.5-10%
Vistara announces international operations; to launch services to Singapore
Zomato partners with TikTok; conducts food drive in 74 cities
Sebi slaps Rs 65 lakh fine on individual for fraudulent trading
HDFC to raise up to Rs 3,000 cr via bonds to augment long-term capital
80 city-centric plans coming soon to make earth green, sky blue again: Javadekar
Parliament passes Aadhaar amendment bill
RBI to discuss with govt issuance of sovereign bonds: Das
Guj CM orders to cancel permissions given to Sterling Port Ltd at Dahej
Govt duty bound to achieve fiscal deficit of 3 pc as per law: FM
Forget about taxman; focus on business: CBDT to start-ups
Petrol price hiked by Rs 2.45, diesel by Rs 2.36 following tax hike in Budget
KERALA NEWS
HC pulls up Kerala govt over Munnar encroachments
 Kochi: The Kerala High Court Wednesday pulled up the state government over the issue of alleged encr  
Student Stabbed at University College: SFI leaders have gone absconding
Ker CM takes a dig at Congress MLAs on quitting spree
Special Additional Sessions court permits Dileep to travel abroad
INTERNATIONAL NEWS
33 dead in suspected arson attack on Japan animation studio
 Tokyo: A suspected arson attack at an animation production company in Japan killed 33 people and inj
Former Pak PM Abbasi arrested over corruption case
Iran Guards say they have seized a ''foreign tanker''
US House votes to condemn Prez Trump over his ''racist'' tweets against four non-white Congresswomen
NATIONAL NEWS
India asks Pak to implement ICJ verdict on Jadhav immediately; Imran says shall proceed as per law
 New Delhi: Maintaining that ICJ verdict on Kulbhushan Jadhav is a complete vindication of its stand,
IT dept attaches assets of Mayawati''s brother, BSP blames BJP govt
Karnataka crisis: Cong leaders speak in divergent voices on SC verdict
MLAS Karnataka crisis: SC says rebel MLAs not to be compelled to take part in Assembly proceedings
Untitled Page
Rashtra Deepika LTD
Copyright @ 2019 , Rashtra Deepika Ltd.