Key Points
Karthik Srinivasan, Group Head - Financial Sector Ratings, ICRA, says RBI has been voicing its concern that the growth, both in terms of bank lending to NBFCs as well as banks and NBFCs lending to the consumer segment has been growing at a pretty fast clip over the last two years..
Could you tell us the initial assessment and the impact that one should be expecting on banks as well as NBFCs following the latest RBI directive?..
The RBI's directive yesterday increased the capital allocations which banks and NBFCs need to make for consumer loans..
Having said that, almost all NBFCs and banks are sitting pretty comfortable on regulatory capital adequacy at this point in time and it is not really going to be a concern from that point of view..
So now depending on how the banks and NBFCs re-strategize their business model towards consumer lending, that would have a play in terms of how the impact would fall out on the fintech companies..
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