What Causes NBFCs To Fail? How Can NBFCs Prevent It From Occurring Again?

How can the sustainability of NBFCs be made more certain? Ramesh Iyer, Vice Chairman and MD, Mahindra Finance, says that Instead of funds, an NBFC's failure to manage liabilities caused it to fail or collapse. He claims that poor capital management and poor governance are also to blame for NBFC collapse. Ramesh continues by saying that the failure of one NBFC increased pressure on other NBFCs to raise money from the market. Ramesh further adds that any organisation of this nature needs the highest order of governance. Watch this Exclusive conversation with Saurav Majumdar, Editor, Business Today.