The Rise - And The Eventual Crisis
NBFCs showed spectacular growth after 2014 but at the cost of huge risk-taking.
The impact of the recent IL&FS crisis, triggered by bond defaults by the shadow bank, is being felt across the financial sector.
The end result is that capital raising has become difficult, NPAs are rising, revenue growth has slowed and their share prices are tanking like never before. NPAs shot up and share prices fell sharply between August 10, 2018, and May 10 this year.
