Credit situation could improve before 2 quarters: Vinay Sah, LIC Housing
“RBI steps to ease liquidity could see better participation by banks in NCDs.”
By 
|
| 
Individual bank managements have to take a call on it but liquidity position will certainly improve, Vinay Sah, MD & CEO, LIC Housing, tells ET Now.
Edited excerpts:
What do you make of the guidelines of the norms that are RBI has issued to further ease liquidity conditions for NBFCs?
It will provide more investment and lending from the banks and there will be better participation by banks in NCDs.
Do you believe that the participation in NCDs is likely to go up?
Yes, I think so, but we have to see how individual bank managements take a call on that.
How much do you think these norms would ease the liquidity conditions for NBFCs because that has been a problem area?
No, as I said, the individual bank managements have to take a call on it but liquidity position will certainly improve.
Something more would be certainly better but the guidelines given by NHB, steps taken by RBI and whatever SBI has said, will certainly increase liquidity to a substantial amount.
CLSA says credit crunch impact is likely to last only two quarters. Do you agree with that view?
Yes it should. Two quarters is a long period. It should get better slightly before that also.
Edited excerpts:
What do you make of the guidelines of the norms that are RBI has issued to further ease liquidity conditions for NBFCs?
It will provide more investment and lending from the banks and there will be better participation by banks in NCDs.
Do you believe that the participation in NCDs is likely to go up?
Yes, I think so, but we have to see how individual bank managements take a call on that.
How much do you think these norms would ease the liquidity conditions for NBFCs because that has been a problem area?
No, as I said, the individual bank managements have to take a call on it but liquidity position will certainly improve.
ADVERTISEMENT
Do you expect more from the RBI with regards to helping NBFCs at this juncture?Something more would be certainly better but the guidelines given by NHB, steps taken by RBI and whatever SBI has said, will certainly increase liquidity to a substantial amount.
CLSA says credit crunch impact is likely to last only two quarters. Do you agree with that view?
Yes it should. Two quarters is a long period. It should get better slightly before that also.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
