To support the portfolios of 33 Non-banking institutions, India’s third-largest bank by loan size Bank of Baroda is set to appoint monitoring agencies.
Non-banking lenders Tata capital, Tata Motors Finance, KKR India, M&M Finance are among the 33 NBFCs that will be under-going assessment.
Bankers in midst of this financial crisis remain concerned over the performance of the NBFC credit. So, to address this issue Bank of Baroda has sent a tender document to agencies to make an assessment of the actual credit quality of the books of NBFCs.
Among the non-banking lenders which are being assessed Bajaj Finance and Bajaj Housing Finance have the maximum exposure totaling to Rs1.05 lakh crore, followed by HDB Financial Services at Rs47,161 crore. The Tata Capital Financial Services, Tata Motors Finance, and Tata Capital Housing Finance have a combined exposure of Rs71,000 crore.
The assessment will include asset-liability management that looks at provisions with regards to the monitoring of NPAs, liquidity issues, and quality of assets. This is identified as a preventive measure to identify any misuse of funds before it turns out into a non-performing asset.