Finance-related News

  Govt's steps to ease NBFC liquidity crisis too short-term: Fitch report Nevertheless, the research claimed that NBFCs will gain more from the recapitalization of state-owned banks in the amount of Rs 70,000 crore, which would improve their ability to lend more money. According to a research, the government's initiatives to offer public sector banks a partial credit guarantee on their asset purchases from NBFCs can only temporarily reduce funding pressure. For purchases of highly rated pooled assets from financially stable NBFCs totaling Rs 1 trillion during the current fiscal year, the government had stated in the budget that it would offer public sector banks a once-off, partial credit guarantee of up to six months for their initial loss of up to 10%. However, as rating agency Fitch noted in a report on Thursday, the action does not resolve investors' long-term worries about NBFCs' exposure to distressed real estate. "Typical losses are more than covered by the ...