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Many termed the immediate aftermath of IL&FS as India’s Lehman moment. No doubt India’s NBFCs had in 2019 their worst year in a decade amid a severe and protracted struggle for funds. But when there were just two failures which the industry took in its stride without needing any bailout, what does it indicate? Was it really a Lehman-like moment?
MUMBAI: When Infrastructure Leasing & Financial Services Ltd (IL&FS) imploded last year, some described it as India’s Lehman moment, referring to the collapse of the storied Wall Street firm that had triggered the 2008 Global Financial Crisis. Sixteen months later, what we have here is the failure of just two shadow banks and several others turning smaller, rather than a
year may bring in a new dawn for the sector. “2020 brings hope because we expect gradual improvement in both demand uptake and liquidity by mid-year,” says Abhijit Tibrewal, analyst at ICICI Securities. According to him, “This would come on the back of improvement in consumption resulting from all the policy, regulatory interventions made by the government and the RBI.”
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