more-inGagan Banga, vice chairman and managing director of Indiabulls Housing Finance, says the recent move by banks to increase loan purchases from NBFCs will be beneficial to mid-sized and smaller firms. Excerpts from an interview:Following the IL&FS crisis, do you think banks have become reluctant to lend to NBFCs? There are various types of NBFCs, I can speak about specifically housing finance companies (HFCs), and within that, I can speak more specifically about us. So, the distinction between housing finance companies and NBFCs is that, when banks lend to HFCs, the risk weight to them is linked to credit rating [of the borrower]. In first half of the current fiscal, we have sold ₹5,000 crore to various banks.

Source: The Hindu October 14, 2018 16:21 UTC