The non-banking financial companies (NBFC) sector, which grew rapidly in the early 1990s but later witnessed a turbulent period, has been in a phase of consolidation during the last two years.
Partner
Crawford Bayley & Co
The main reasons for to the accumulation of non-performing assets, innumerable closures and bankruptcies must have been deteriorating credit fundamentals and difficult business conditions, which impacted credit growth in their primary businesses.
Additionally, the flow of retail public deposits declined sharply after the changes in the regulatory environment and increased caution exercised by retail investors. The uncompetitive size, the difficult business outlook on the asset and liability side, declining performance and the inability to recapitalize resulted in a large number of weak companies closing down.
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Sanjay Asher is a partner and Bhumika Batra is an associate with Crawford Bayley & Co.
Crawford Bayley & Co
State Bank Buildings
NGN Vaidya Marg
Fort Mumbai – 400 023
India
Tel: +91 22 2266 3353
Fax: +91 22 2266 3978
Email: sanjay.asher@crawfordbayley.com
