Despite IL&FS crisis, RBI to ensure growth of NBFCs with adequate credit

In spite of the previlaing concerns around non-bank lenders due to defaults by industry major IL&FS, the Reserve Bank Friday said it will ensure that growth in the shadow-banking sector is sustained and liquidity fears are eased. The NBFC sector is liquidity crisis after a series of defaults by Infrastructure Leasing & Financial Services (IL&FS) and its many subsidiaries since late August. "While in 2018-19, though concerns surrounding the sector due to debt defaults amidst temporary asset liability mismatches arose, the inherent strength of the NBFC sector, coupled with the RBI's continuing vigil on the regulatory and supervisory front, will ensure that the growth of the sector is sustained and liquidity fears are allayed," RBI said in its annual report on 'Trends & Progress of Banking in 2017-18', released Friday. The report said the NBFC sector, with a size of around 15 percent of the commercial banks' combined balance sheet, has been growing robustly

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