As Reserve Bank of India (RBI) on Thursday sought action against four Non-Banking Financial Companies asking them to cease and desist from making new loan sanctions and disbursements. A report by Morgan Stanley suggests more lending companies might face similar scrutiny.
The report noted that lending rates at Asirvad Microfinance, one of the impacted NBFCs are not significantly different from other lenders, based on data provided by MFIN, an industry body for microfinance lenders.
The report observes and asks whether lending rates alone were the cause for concern by RBI against specified NBFCs or whether broader issues are at play.
“Based on an observation of lending rates data collated and presented by MFIN (industry body for microfinance lenders), we note that Asirvad Microfinance’s lending rates are not very different from other lenders” said the report.
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