Non-banking financial companies (NBFCs) should reduce their excessive reliance on Bank borrowings.
The study, titled ‘𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝗲𝗰𝗲𝗻𝘁 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗡𝗕𝗙𝗖 𝗦𝗲𝗰𝘁𝗼𝗿,’ highlighted that a significant majority of non-bank lenders rely primarily on bank loans and market borrowings, constituting the most substantial portion of their total borrowings, accounting for approximately 75%.
The paper stressed the importance of non-bank financial companies (NBFCs) broadening their funding channels and diminishing their reliance on loans from banks. Furthermore, it urged banks to enhance their governance and risk management standards and to heighten their vigilance regarding cybercrimes, particularly in the rapidly expanding digital lending sector, which presents both prospects and obstacles.