Liquidity issues for NBFCs is well and truly behind, according to Dinanath Dubhashi, MD & CEO of L&T Finance Holdings.
“The topic which was very big for NBFCs liquidity, I believe it is well and truly behind the sector especially behind AAA companies. Concentration going ahead will actually be on reducing borrowing costs. That was not the concentration last year, it was more about liquidity,” he said.
“Rural segment where we are strong and now becoming stronger, in farm we have taken number one position, we have been able to ride on that and we will continue to ride on that,” he said.
On disbursements, he said, “Disbursements which are still just picking up, like microfinance will pick up going into Q3-Q4.”
On provisions, he said “Our GS3 (gross stage 3) are at an all-time low, provision coverage 70 percent and most importantly with the additional provisions we have, 2 percent of all standard assets is that additional provision that we are carrying. So total provision on the balance sheet is 6.5 percent versus GNPA ratio of 5.2 percent which gives us the confidence that whatever uncertainties have to come, we are getting well and ready for that.”
To know more, watch the video.