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3.The next two big weak links – India bulls and Yes Bank
4.Cumulatively among the 3, there is a 5 lac crores exposure at risk.
4.Cumulatively among the 3, there is a 5 lac crores exposure at risk.
5.Sensible thing would be for the RBI to look at the books of DHFL
a. If no skeletons – then give them a line of credit to tide over any liquidity issues
b.If problem in the books – then takeover and run down the book in a way that does not put the whole system at risk.
a. If no skeletons – then give them a line of credit to tide over any liquidity issues
b.If problem in the books – then takeover and run down the book in a way that does not put the whole system at risk.
6.Basically the regulator is failing in its duty to be proactive to prevent systematic risk. With IL&FS, by the time authorities got in – the loot was already done so not much could have been prevented.
7. One would think that the banks who have got exposure to DHFL and other stressed NBFCs would push RBI to proactively get involved at this stage rather than later. But funny thing is banks say that the exposure is standard on their books so they are OK.
8. The key thing is whether DHFL can tide through this crisis or not. I don’t have the answer but the current liquidity crisis is real and they are not able to raise any money. Credit markets are closed for all but a few NBFCs.
Will be interesting to see how it all plays out
Will be interesting to see how it all plays out
