Volume : 8, Issue : 3, March - 2019

Is policy need of the hour for Asset liability management - NBFC-HFCs?

Dr. V. Sornaganesh

Abstract :

Non-banking finance companies (NBFCs) form an integral part of the Indian financial system. In India, NBFC sector has undergone a notable transformation over the past few years and has shown consistent on year-on-year growth .They play a critical role in the core development of infrastructure, transport, employment generation, wealth creation opportunities and financial support for economically weaker sections. This paper was shaped by the research question “Is policy need of the hour for Asset liability management-NBFC-HFCs”NBFC Housing Finance companies only. Imprudent liability management can put NBFCs‘ earnings and reputation at great risk. The basic objective of Asset Liability Management system is to assess risks and suggest measures to manage them in order to implement strategic tools for NBFCs. Long term assets funded by short term borrowings is not a desirable situation for NBFC’s. The analysis from this study will help government departments, regulators, market participants and research scholars to gain a better understanding of the role of NBFCs in promoting financial inclusion in the country.