[INDIAN ECONOMIC NEWS] Good morning, everyone. I’m Kim suhyeon staff of Kamagroup Pvt. Ltd. Here I have an important Indian economic news to share with you which is as undermentioned.
The liquidity crunch -
The crisis was in the financial markets w here post-IL&FS funds dried up as corporates pulled out their money f rom mutual funds and put it I nto banks. Banks had ceded some of their lending space to NBFCs during demonetisation in 2016. But in the few weeks before Diwali, when about Rs 50,000 crore cash withdrawals f rom the financial markets took place, NBFCs’ funding of consumption items, including consumer dura bles, and autos, vanished.
It was a crisis of confidence because we were not a ble to protect our institutions and this shook the financial markets resulting in a liquidity crisis, say the members.
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Have a nice day.