India’s third largest bank by loan size Bank of Baroda has appointed agencies in a bid to monitor the entire NBFC loan portfolio on behalf of all lenders, reported ET.
Non-Banking Financial Companies (NBFCs) Bajaj Finance, Tata Capital, HDB Financial Services, Tata Motors Finance, M&M Finance, KKR India, Indiabulls Commercial Credit including 33 non-bank lenders with an exposure of Rs. 4 lakh crore to the banking system are a part of the list.
As per the development, monitoring agencies would be analyzing the asset quality, cash holdings, likely pulling out of funds if any, flag non-business transactions among a host of others requirements. “Bankers are worried over the performance of the NBFC credit, so they want an assessment of the actual credit quality of their books and the potential stress build up that could happen,” said a banker while speaking with ET.
“A tender document have been sent to agencies working in this space, and appointments will be made soon.”