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Coronavirus slump: NBFCs cast shadow on economic recovery

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If bad loans rise as many including the central bank expect, banks and shadow lenders are set to become ever more cautious just when credit is most needed to keep the economy going MUMBAI : In the second week of April, deep into India’s initial 21-day lockdown to curtail the spread of the coronavirus, senior officials at Bajaj Finance Ltd.

held a conference call. The prognosis wasn’t good. In just 10 days the keystone shadow lender had lost 350,000 customers and almost ₹5,000 crore ($651 million) in assets under management.

Small and medium enterprises were under strain and it was considering setting aside money for losses in case large borrowers went under. “We are in an uncharted zone," Rajeev Jain, managing director of the Pune-based

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