........ How do you see (former RBI deputy governor) Usha Thorat’s recommendations on NBFCs? Is the raising of core capital requirement to 12% from 7.5% a concern?
The raising of core capital by 4.5 percentage points may not be a concern for Shriram Transport Finance. It is the reduction of accounting NPAs to 90 days from 180 days, which small borrowers will take time to adhere, who are not serviced by banks. It will take time for these borrowers to make this cultural shift to follow the 90 days (schedule) and, therefore, till then NBFCs’ books will carry larger NPAs and higher provisioning as a result.......
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