Top Shadow Banker Calls Time on India’s Credit Crisis
- Interest-rate cuts and liquidity infusion will ease situation
- The market may return to normalcy by December: Edelweiss’ Shah
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One of India’s top shadow financiers by assets is betting that central bank easing will bring an end to the nation’s prolonged credit crisis, even as fresh strains in the sector emerged this week.
“Interest-rate cuts and infusion of liquidity by the RBI will give a boost to the bond markets and aid the credit market to return to normalcy by December,” Rashesh Shah, chairman of Edelweiss Financial Services Ltd., said in an interview from the company’s steel-and-glass headquarters in Mumbai. “Steps taken by the government will also help alleviate concerns around non-bank lenders.”