India’s banks freeze out extensively used shadow lenders
Non-bank lenders, the health of which India’s big banks doubt, are short of working capital as debt collections dry up
21 April 2020 - 12:54
Mumbai — India’s banks are freezing credit lines to shadow lenders as the coronavirus crisis shuts down commerce in Asia’s third-largest economy, but leaving this sector in the lurch risks wider financial contagion.
All major state-owned and private banks have stopped lending to non-banking financial companies (NBFCs) due to concerns about their financial health as businesses they lend to reel from the effect of the Covid-19 pandemic, four industry executives, who asked not to be named due to the sensitivity of the situation, said...
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