New Delhi: As Finance Minister Nirmala Sitharaman is scheduled to present the Budget for the financial year 2022-23 in February, the NBFC sector is upbeat that the forthcoming Budget expected to provide much-needed impetus to economy.
"Given that NBFCs play a vital role in supplementing the banking industry, we envisage that the forthcoming budget will provide the much-needed impetus to the economy owing to the slowdown induced by the COVID-19 outbreak," George Alexander Muthoot, MD, Muthoot Finance told Zee Media.
Even though the RBI and the Government have so far prioritized supporting nascent growth recovery, it will be important to keep an eye on sops for the micro, small & medium enterprises (MSME) sector, tax rebates for MSMEs/small business, and housing segments, he added.
George Alexander Muthoot also exuded confidence that there will be pick up in overall credit demand.
"While the gold loan demand has been healthy, we are optimistic about pick up in overall credit demand in the country. We expect recapitalization of public sector banks to improve their lending capacity and that would also lead to greater liquidity flow towards the NBFC sector," he said.
"We are also in tandem with the recent industry discussions with the honourable Finance Minister regarding new arrangements of including bank lending to NBFCs for on-lending to priority sector should be considered as PSL (priority sector lending) and given a permanent status," added George Alexander Muthoot.
#mute
