NBFCs may see rise in refinancing as RBI allows loan restructuring: Report

A higher quantum of restructured assets would clearly reflect higher asset quality challenges for NBFCs and can restrict their ability to mobilise funds from banks and capital markets


Collection efficiency, reflecting the repayment behaviour of customers, has improved since April 2020 with easing of lockdown restrictions.

Press Trust of India Mumbai
With the Reserve Bank allowing restructuring of loans that are facing stress due to the Covid-19 pandemic, non-banking finance companies are likely to see an increase in their refinancing requirements, says a report.

Last week, RBI gave permission to lenders to go for one-time restructuring of corporate and personal loans facing stress due to the disruptions caused by coronavirus.

"The Reserve Bank of India's decision allowing lenders to restructure loans would increase their refinancing requirements, especially for non-banking banking companies (NBFCs)," India Ratings and Research said in a report.

First Published: Aug 12 2020 | 5:55 PM IST

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