4 hrs ago
Murmu Urges NBFCs and HFCs to Diversify Funding
Shirish Chandra Murmu asked non-bank lenders to get money from several different sources.
This can help them remain stable when investors become worried.
He said earlier liquidity problems showed weaknesses in how some lenders managed money coming in and going out.
Some also relied heavily on short-term borrowing from large investors.
Murmu said lenders need stronger governance and better plans for handling financial risks.
He supported building a deeper corporate bond market so lenders have more ways to raise money.
He also said securitisation can help transfer risk and free up capital if it is transparent and lenders keep some risk.
NBFCs are becoming important specialist lenders for areas such as housing, vehicles and infrastructure.
RBI Deputy Governor Shirish Chandra Murmu urged NBFCs and HFCs to diversify their funding sources.
He said past liquidity stress exposed weaknesses in asset-liability management and reliance on short-term wholesale funding.
Murmu called for stronger governance and liquidity-risk management to reduce vulnerability to market-sentiment shifts.
He backed a deeper corporate bond market and broader securitisation with transparency and risk-retention safeguards.
NBFC credit reached 16.7% of nominal GDP and 27% of scheduled commercial bank credit, he said.
- Who
- Reserve Bank of India Deputy Governor Shirish Chandra Murmu, speaking to non-banking finance companies and housing finance companies.
- What
- Murmu urged NBFCs and HFCs to diversify funding and strengthen governance, liquidity-risk management and asset-liability management.
- Where
- Mumbai, at the CII NBFCs & HFCs Summit.
- When
- Thursday, at the CII NBFCs & HFCs National Summit 2026.
- Why
- To reduce vulnerability to liquidity shocks, market-sentiment shifts and concentrated reliance on short-term wholesale funding.
Key facts
- Speaker
- Reserve Bank of India Deputy Governor Shirish Chandra Murmu
- Audience
- Non-banking finance companies and housing finance companies
- NBFC credit share of nominal GDP
- 16.7%, up from 15.9% a year earlier
- NBFC share of scheduled commercial bank credit
- 27%, up from 26%
- Funding recommendation
- Diversify funding sources and strengthen liquidity-risk management
- Market development
- Build a deep, liquid corporate bond market
- Securitisation safeguards
- Use proper skin-in-the-game and transparency rules
Quotes
Shirish Chandra Murmu
Reserve Bank of India Deputy Governor
“Many NBFCs and HFCs have deep expertise in specific sectors, such as supply chain finance, infrastructure debt, affordable housing, vehicle financing, and gold and silver-backed lending, among others. This specialisation supports sharp risk management and better products. Our economy needs lenders who understand specific industries and can structure credit around their borrowers’ cash flows.”
financialexpress.com
“Past liquidity events have shown how exposed NBFCs and HFCs can be to shifts in market sentiment and funding concentration. Strong liquidity risk management is not optional. Recent episodes in some advanced economies are reminder of this. Entities must diversify their funding sources.”
financialexpress.com
Sources
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