AdvertisingLack of funds or credit to roll over short-term debt falling due in the coming months can potentially affect other non-banking companies and may lead to more defaults in the NBFC sector. Editorial | NBFC crisis could accentuate contagion risk in financial sector. So unless there is a domino effect, the government will wait and watch, hoping that the system cleans itself up. For instance, DHFL is selling its entire 49 per cent stake in Avanse Financial Services Ltd, an education-focused NBFC. “This is to ensure that Edelweiss survives and emerges from this crisis to play the second round,” said a source.

Source: Indian Express June 10, 2019 23:15 UTC