Budget 2019 Likely To Extend Support To NBFC, Banking Sector

It has been mentioned in the report that there is a need to send a strong message related to certain flaws in NBFC sector. This is more important because if the situation in NBFC sector does not improve, then banks will have to go ahead and face a new round of NPA provisions.

New Delhi: After many defaulting by Infrastructure Leasing & Financial Services sector, there is a need to pay immediate attention to the non-banking financial company (NBFC) sector which is facing cash crisis. This is said in a report by State Bank of India. According to the report, "By March 2020, there will be 47.5 trillion bonds and documents maturing of NBFC sector. After this, most of the NBFC investments are in the realty sector”. It has been mentioned in the report that there is a need to send a strong message related to certain flaws in NBFC sector. This is more important because if the situation in NBFC sector does not improve, then banks will have to go ahead and face a new round of NPA provisions. It has been emphasized in the report that focusing on issues related to NBFC sector and making the engine of development for MSME should focus on the budget. Underlining another point of concern, the report says that the periodic loan will strengthen the agriculture sector. Apart from this, it has been said in the report that there is a need to pay special attention to the establishment of Agri-Marketing Reforms Council (AMRC) on the lines of GST Council and the harnessing of fast-shrinking water resources.