onetothreeyear maturities compared with 7590 bps a month earlierour borrowing cost has risen 50 basis points as we had to cough up higher rates on whatever little fund we have managed to mobilise since the crisis erupted says todiassetliability mismatchin mumbais financial districts this is seen as a setback for a lending model anchored in shortterm borrowing and longterm lending creating what is called the assetliability mismatch but the repercussions are felt throughout india far beyond mumbais money hubsa lot of nbfcs are not able to fund smes said sanjaya agarwal md and ceo au small finance bankthe squeeze could amplify the npa problems at present bad loans of nbfcs are at 58 down from 61 in fy17we have postponed a rs 3040 crore contract because of the increase in rates and not getting funding on time said chandrakant salunke founder of macro group of companies which is into packaging products now i cannot sign a contractif banks and mutual funds do resume lending to nbfcs it could be yet another demonetisation moment for small businessesbanking stress had allowed nbfcs to grow but they should understand that they cant lend long on shortterm funds said ashok kumar pradhan managing director at united bank of india if banks can now take back that space a lot of discipline will return to the system by atmadip ray shilpy sinha et bureau published on oct 17 2018 at 0257 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etretail app get realtime updates save your favourite articles scan to download app sme nbfc business legal tender restaurants housing finance durga puja homenewsindustrythe coming sme squeeze as funds run dry the ilfs contagion threatens the livelihood of millions