SBI To Buy Assets Worth Rs 45,000 Crore From Liquidity Starve NBFCs

News World India | 0
| October 10 , 2018 , 13:10 IST

State-owned State Bank of India (SBI) has decided to buy assets worth Rs 45,000 crore from liquidity starved Non-banking Financial companies (NBFCs), media reported on Tuesday. 

Earlier, SBI was planning to purchase assets worth Rs 15,000 crore from NBFCs but has decided to purchase additional assets worth Rs 30,000 crore to improve its loan portfolio.

“Bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year which is now being enhanced. As per the bank’s internal assessment, there may be an opportunity to buy additional portfolio in the range of Rs 20,000 to Rs 30,000 crore,” SBI said in a statement.

NBFCs are facing liquidity issue triggered by a number of debt repayment defaults by Infrastructure Leasing & Financial Services (IL&FS) group and its subsidiaries.

Also Read: FM Arun Jaitley Assures Support To NBFCs And SMEs

The deal would help both, as NBFCs will get liquidity and SBI will get good loan portfolio.

PK Gupta Managing Director of SBI was quoted PTI as saying, “This is a good commercial opportunity for the bank to increase loan portfolio as NBFCs assets are available at attractive rates.”

According to reports, the National Housing Bank (NHB), which regulates the NBFCs has also assured to refinance NBFCs by Rs 30,000 crore.

Previously, on September 24 Union Finance Minister Arun Jaitley had said that the government will take all measures to ensure that adequate liquidity is maintained for the NBFCs.