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The non-banking financial sector is expected to return to normalcy in at least three to four quarters, according to Gruh Finance Ltd.’s Managing Director Sudhin Choksey.
“The dust will slowly and gradually settle down,” Choksey told BloombergQuint. “If players stick to prudence of observing the asset-liability management guidelines of the regulator and building some amount of liquidity with them, that will see them through this difficult period.”
Non-bank lenders have been facing liquidity crunch since September when defaults by debt-laden Infrastructure Leasing & Financial Services Ltd. triggered a credit crisis.
“The problem this time is due to the risks that the players have taken themselves to garner higher yields, but the sector is returning to business as usual, with many players raising funds in the market for short-term,” he said.