- The chances of rising stress among non-banking financial companies has set the stage for a string of portfolio buyouts. We find that many of the Non-Banking financial companies (NBFCs) are looking at an outright portfolio sale for funding.
- We observe there is reluctance from Bankers side to lend, and particularly private banks. We observe that there are offers by Oaktree Capital, Adani Properties, S C Lowy and Piramal Enterprises last week either to pick up Dewan Housing Finance Corporation’s entire book for ~28,000 crores, or choose from it, are not being seen as a one-off.
Here is a picture of the Collections made by NBFCs which is, of course, a Pre-Covid level detail
Rising stress among NBFCs, and the difficulty faced by many of them in raising resources, possibly may force the hand of several players. Options like exiting a business segment, or focusing only on co-origination, or seeking formal partnerships (including consolidation with another player), are also being pursued as per reports available.
Here is a comparison of NBFC Vs. Banks after the moratorium.
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