Housing finance segment facing liquidity issues but no crisis: Injeti Srinivas

Amidst authorities working on ways to tackle the Infrastructure Leasing and Financial Services (IL&FS) crisis, Corporate Affairs Secretary Injeti Srinivas has said that the segment of housing finance within the Non-banking finance companies (NBFC) sector is facing liquidity problems but there is no crisis. He also stressed upon need for introspecting the business models followed in the NBFC sector and adopt the model that is sustainable.

Noting that liquidity challenges are more pronounced in some companies, Srinivas has said that it is across the NBFC sector that requires overall easing, and adequate steps being taken at the macro-level. He said “So, I don't see any crisis. It will be addressed duly in the short term. In the medium and the long term, the way you finance and expand all these will have to look into. All entities should follow sustainable business development approach.”

Corporate Affairs Secretary informed that the government has been taking steps to address the liquidity issue in the overall financial system and the RBI infused liquidity by way of purchasing bonds in the last few weeks. Talking about the Serious Fraud Investigation Office (SFIO) probe into the IL&FS case, he said there is progress on that front. He noted that there are more than 300 companies and there are many issues. He added that SFIO is investigating and it is taking deposition from key personnel.