FIDC has urged the Reserve Bank of India (RBI) to permit additional mortgage restructuring and extra liquidity assist. Sanjay Chamria Co-Chairman of the Finance Industry Development Council (FIDC) spoke to CNBC-TV18.
FIDC represents the curiosity of retail NBFCS and it consists of each huge and small.
Chamria stated, “I am asking to restructure the loans which we have given to the individual customers that include MSMEs, marginal farmers, local contractors, small shop keepers, etc. on one hand. Then we are asking for the smaller NBFCs who also require restructuring of their liability side. Smaller NBFCs who have less than Rs 500 crore find it difficult to borrow money so we are seeking from RBI that that should also be restructured so that there is no asset-liability mismatch in their balance sheet.”
He additional added, “The total exposure to the retail informal segment customers who qualify as a MSME is in the tune of several lakh crore. If you look at the large NBFCs also more than 70 percent of the book comprises the loans given to the segment of the customers. Therefore the overall universe that we are talking about would be multiples of lakh of crore and not in a few thousand crore. So the problem is really big at hand.”
On mortgage restructuring, he stated, “We successfully navigated last year so we require a comprehensive set of measures, one which includes the restructuring to be allowed. Second, ask that we have made today that there should be additional provisioning requirements from a mismanagement perspective and RBI last year had asked for the companies falling in this that they should provide from a risk perspective.”
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