It doesn’t seem like a systemic problem: Nabard chairman
There is no liquidity crisis in the NBFC sector right now, according to SBI chairman Rajnish Kumar.
“There is no liquidity crisis in the NBFC sector… Roll-overs have been successful and all of them have been able to meet their commitments as far as their obligations are concerned,” Mr. Kumar said on the sidelines of an event here on Thursday.
Mr. Kumar’s comments come at a time when the government and the RBI are in disagreement over the liquidity situation of NBFCs.
Nabard chairman Harsh Kumar Bhanwala also sought to downplay the liquidity issue, saying that it had improved significantly since the IL&FS crisis.
“After IL&FS, probably there was some liquidity shortage, but we have seen a lot of improvement in this,” Mr. Bhanwala said. “So, as such, there is no large problem. The issue arises on account of some who have borrowed short and have created long assets. So there might be specific problems, but it doesn’t seem like a systemic problem,” he added.
“For the first time in a few years, credit growth has outpaced deposit growth,” Mr. Bhanwala said. “Agriculture credit growth has been very robust. We were to achieve a target of ₹11 lakh crore. The way we see credit disbursement in the kharif crops, we should surpass ₹12 lakh crore.”
Mr. Bhanwala said that he did not feel that the contagion from the IL&FS crisis was spreading.