Property developers next in firing line from NBFC liquidity crisis
With non-banking financial companies themselves struggling, their disbursal of loans to property developers has slowed significantly: analysts
Mumbai: India’s banking liquidity crunch is extending to the nation’s property developers, threatening to derail a nascent recovery in the property sector. Home builders in India have increasingly been turning to non-bank lenders or NBFCs for funding as traditional financiers struggle under bad loans. But following the government’s seizure of troubled shadow bank Infrastructure Leasing & Financial Services Ltd (IL&FS) earlier this month, that avenue may be choked off too.