• Rajasthan

    Cong 99
    BJP 73
    RLM 3
    OTH 24
  • Madhya Pradesh

    Cong 113
    BJP 110
    BSP 2
    OTH 5
  • Chhattisgarh

    Cong 68
    BJP 15
    JCC 7
    OTH 0
  • Telangana

    TRS-AIMIM 95
    TDP-Cong 21
    BJP 1
    OTH 2
  • Mizoram

    MNF 26
    Cong 5
    BJP 1
    OTH 8

* Total Tally Reflects Leads + Wins

IL&FS default: SBI offers to buy Rs 45,000 crore worth assets from cash-strapped NBFCs; here’s why

By: | Published: October 10, 2018 10:09 AM

Hit by a series of defaults by debt-ridden IL&FS group, the largest lender in the country SBI has offered to purchase good quality assets worth Rs 45,000 crore from NBFCs.

SBI says that the purchase of good assets from NBFCs provides it an opportunity to increase the loan portfolio at attractive rates

Hit by a series of defaults by debt-ridden IL&FS group, largest lender in the country SBI has offered to purchase good quality assets worth Rs 45,000 crore from NBFCs. “SBI steps up target for purchase of good quality portfolio of assets from NBFCs, as it believes that there is good opportunity to expand its loan portfolio at attractive rates. The bank is looking for opportunities both in priority and non-priority sectors,” The Indian Express reported citing SBI. The public sector lender which already plans to purchase assets worth Rs 15,000 crore has now planned to purchase additional assets of up to Rs 30,000 crore.

The bank says that the purchase of good assets from NBFCs provides it an opportunity to increase the loan portfolio at attractive rates benefiting both SBI and NBFC sector. The crisis-hit sector will receive more liquidity with its purchase, it added.

There should not exist any concern on the liquidity position at NBFCs, SBI Chairman Rajnish Kumar. The latest move by the bank comes as NBFCs said they are under pressure over severe liquidity squeeze ahead of the impending festive season as they are not being able to raise funds from the commercial sector and  corporate debt market at viable rates.

“Since last Monday, we have seen banks completely stop lending to our HFCs and NBFC even though such loans are backed by mortgages. This is leading to a situation where we are cash-strapped and it may affect lending, especially consumer loans ahead of the festive season,” he said.

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