InvestorQ : What are the things to look out in the financial services sector in Budget 2020?
Lavanya Subramanian made post

What are the things to look out in the financial services sector in Budget 2020?

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Purvesh answered.
1 year ago
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The budget will be announced on 1st February 2020. Considering the present scenario and the economic condition, the hopes are really high and only look forward to the budget as a source of revival for the economy. Not sure about three things, but two things to look out in the financial services sector in this budget could be:

NBFC Crisis: Non-Banking Financial Companies (NBFCs) play an important role in providing access to easy credit to individuals and businesses. The shadow bank sector has also seen a major hit due to the crisis in the real estate sector and governance problems. Some entities found it really difficult to meet their funding needs with banks turning cautious before extending credit and funds not being easily available from the market. So, these problems still persist and in the economy therefore, some steps are expected from the budget in this regard.

Boosting credit in the economy: This should be a priority of this budget, as the credit growth for the overall banking sector took a hit amidst this slowdown. The central bank also said that banks need to start lending to industries in order to regulate the Capex and investment cycle. In the present scenario, higher credit growth will be even more important as would also be representative of higher demand and higher investment in the economy.
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