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.
In the course of time, you'll probably see that prudence will prevail and things will come back to normal.Sudhin Choksey, Managing Director, Gruh Finance Ltd.
Choksey said he is satisfied with how Gruh Finance fared through the situation.
The real estate sector, he said, is expected to be back on track by October next year.
Watch the full interview here:
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