- SENSEXNIFTY 50
AAA rated NBFCs were able to access money at 5-5.5 percent for the last couple of months, but with liquidity being ample the cost of funding for second, third tier NBFCs has come off quite a bit.
“Cost of funding has gone down by 40 bps in first half of FY21,” said Sanjay Chamria, VC & MD of Magma Fincorp in an interview to CNBC-TV18.
According to him, micro, small and medium enterprises (MSMEs) are struggling for funds while top rated companies are drawing money cheap.
Meanwhile, R Sridhar, Executive VC & CEO of Indostar Capital Finance expects further decline in cost of funds.
According to Sridhar, average cost of funds will come down by 25-30 bps by March 2021.
On business front, Indostar is looking at portfolio acquisitions and inorganic moves. The company has decided to wind down corporate business subsequent to IL&FS (crisis).
“There is no impact of corporate lending business exit as retail lending business is going to go up,” added Sridhar.
For entire discussion, watch video
