INSUBCONTINENT EXCLUSIVE:
But it promised to open the spigot when necessary
systemic issues rather than specific segments which may have been facing difficulties due to poor management.
Accelerating investments and
credit growth rate, which is higher than the nominal economic growth rate, are signs of strength rather than weakness that warrants bailout
Our assessment shows there is no such necessity at present, given the sound health of the economy
is at the centre of a rift between RBI and the government after defaults by Infrastructure Leasing Financial Services led to a credit
While there has been no default by other major NBFCs, they are forced to roll over short-term commercial paper borrowings and shift to
longer-term debt to adjust assets to liabilities.
Acharya said that the banking regulator has been in regular touch with market watchdog the
Securities and Exchange Board of India (Sebi) to access the fallout of mutual fund redemption and rollover risk for NBFCs and housing
RBI has also taken a slew of measures to improve cash flows for NBFCs.
It allowed banks to provide partial credit enhancement on bonds
raised by NBFCs and HFCs, helping raise credit quality of bonds
It has also relaxed securitisation rules to allow the risk to be transferred to better funded bank balance sheets
We have given NBFCs and HFCs time and the opportunity to make own adjustment on both asset and liability side, in particular in the duration
50,000 crore in November, taking the total to Rs 1.36 lakh crore this fiscal
Liquidity injected under daily liquidity adjustment facility on an average daily net basis was Rs 56,000 crore in October, Rs 80,600 crore
RBI promised to increase frequency and quantum of open market operation till march and plans to conduct long term repo auctions to tide over