In this blog, we curate relevant and remarkable content related to digital banking, fintech and high-performance banking leaders. This remarkable piece by Weizhen Tan published on CNBC reports that India’s non-bank financial sector has been facing a crisis, with many “shadow lenders” struggling with bad assets and corporate governance issues. Read on.
“India’s troubled shadow banking sector is not out of the woods yet, but it may be in a “much better position” than before, said the chairman of the country’s largest public lender.
Rajnish Kumar, chairman of the State Bank of India, acknowledged that India’s non-bank financial companies (NBFCs) — often referred to as shadow lenders — faces funding challenges, but he struck an optimistic tone about the outlook.
Shadow banking refers to often high-yield lending undertaken by NBFCs that takes place outside the regular banking sector. They are not subject to strict regulation and can sometimes be risky.”