Central-Bank Governor Dashes Bailout Hopes for India’s Struggling Shadow Lenders
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The Reserve Bank of India would prefer a market-led resolution to the nation’s simmering shadow banking crisis, Governor Shaktikanta Das said, dashing hopes for bailouts in the struggling sector.
“We are monitoring the top 50 non-bank finance companies, which account for 70%-75% of the sector loans outstanding,” Das said at the Bloomberg India Economic Forum in Mumbai late Thursday. “The first preference would be to have the market mechanism resolve the problems of NBFCs, which involves inflow of resources either by stake sale, bringing in new promoters, or securitization of assets.”