IL&FS-led liquidity woes, Aadhaar ban roil NBFCs, micro-lending dips by 15%
The liquidity crisis at NBFCs triggered by the bankruptcy of IL&FS and the Supreme Court verdict banning use of the Aadhaar data for financial transactions have led to a 15 per cent drop in micro-lending by financial institutions for the December 2018 quarter.
Disbursements stood at Rs 41,840 crore for the third quarter of the current fiscal year, down from Rs 49,450 crore in the preceding three months, show the data from the credit information company Crif High Mark.
«There were two major changes during the quarter which may have resulted in the decline. First was the liquidity trouble, which subsided towards the end of the quarter, and the second was the Aadhaar verdict,» agency vice president Parijat Garg told PTI.
Garg said the Aadhaar verdict, which prohibits all financial institutions including non-banking finance companies from storing a users data, resulted in a fall in disbursements and also resulted in a marginal fall in the share of NBFC-MFI lenders in ...