State Bank of India (SBI) has approached the Reserve Bank of India (RBI) to put a cap on non-banking financial companies’ (NBFCs) lender base. Currently, many NBFCs borrow from over 50-60 lenders at the same time.
The country’s largest bank believes that large number of lenders dilutes the ability to monitor NBFCs loan books significantly. “Almost all NBFCs today have a large number of banks as their lenders. In some cases, it can be upwards of 50-60 in their liability mix that crimps our ability to do due diligence,” a source said. SBI did not respond to queries sent by FE till going to the press.
The source explained that there are multiple banks who are lenders to a…
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