The Country’s largest lender State Bank of India has come up in support of NBFCs, by stating that it will buy good quality assets worth Rs.45,000 Crore from Non-Banking Financial Companies (NBFCs) that are facing the liquidity crisis. The NBFCs are facing this liquidity pressures due to series of debt repayments defaulted by infrastructure financier IL & FS and its subsidiaries. State Bank of India earlier planned to purchase assets worth Rs.15,000 crore, has now enhanced the amount and decided to buy assets up to Rs.30,000 crores.“Both SBI and NBFCs will be benefited by this decision as they get much-required liquidity while the bank will get good loan portfolio”, said SBI Managing Director PK Gupta.
“Bank is looking for opportunities both in priority and non-priority sectors”, said SBI in a statement. “Loans would largely be in the priority sectors”, added Chief Financial Officer Prashant Kumar.
The National Housing Bank (NHB) said that it will also enhance the refinance limit for NBFCs to Rs.30,000Crores from Rs.24,000 crores in order to inject liquidity.