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Everyone is upset about India's banking mess except NBFCs. Here's the reason why

Everyone is upset about India's banking mess except NBFCs. Here's the reason why

Finance
When Infrastructure Development and Finance Co (IDFC) was granted universal banking licence in 2014 from among 26 applicants, it was the envy of those who missed out on the coveted prize. Three and a half years later, both investors and the managements that were not lucky enough, are smiling. A surge in liquidity, regulatory arbitrage, and the crippled state of banks converged to make the non-banking finance company (NBFC) business model a success with equity investors latching on to any business that would reflect the Indian financial services growth without its baggage of bad loans. Life has come a full circle with premium attached to banks shrinking while NBFCs gaining traction. IDFC Bank which came into being in 2015 has lost 15.91 per cent since, while its parent IDFC gained 16.33...