Key Points
Just a day after the biggest wealth creator from the NBFC space witnessed a sharp cut, it might appear that NBFC is not a right sector to look at..
But go back to history and one would see that the time to look at a sector is when something which is perceived as negative..
In the last three months, whether it is the consumer lending or housing finance segment, the RBI has been tightening the laws and regulations for provisioning..
Given the fact the NBFC sector has a history of meeting with accidents and creating problems for a lot of sectors..
The answer tilts toward yes, this regulatory tightening is good and in long term value accretive...
