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Panic in NBFCs was due to analyst reports, says Keki Mistry

Updated : December 18, 2018 06:37:08 IST

One of the key takeaways from a recent Credit Suisse Financial Products (CSFP) report is that access to finance will continue to be a challenge for micro, small and medium enterprises (MSMEs).

The report also adds that the recent problems of non-banking financial companies (NBFCs) are likely to drive a slowdown in credit growth.

Keki Mistry, VC and CEO of HDFC said that higher optimism a couple of years back led to increase in number of NBFCs and added that most NBFCs were set up on account of getting better valuations.

Liquidity in the system led to short-term money getting rolled over, said Mistry, adding that panic was created by analyst reports on leveraging undertaken by NBFCs.

We are not surprised that growth slowed in the latter part of September 2018, he added.

However, he expects things to get better between January and March.
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