Sanjiv Bajaj wants NBFCs to cast a wider borrowing net

"So that's not so much a line to be used all the time. But it's more to give confidence — whether to borrowers, other lenders or NBCFs, that there is an RBI that has your back. So it's more from that point. And to be fair, RBI offered this as a line through COVID as well," Bajaj added.

Regarding borrowing costs, Bajaj expressed optimism about a potential decline in interest rates later in the year, acknowledging uncertainties in the global landscape. He highlighted the transmission lag in rate adjustments, cautioning that it might take time for rates to reflect changes.

"Of course, there is significant uncertainty with the Western world with a mild recession in Europe — a softer return is what they are now talking about the war. Multiple wars continue, so let's not forget that uncertainty remains. But we are hopefully at the peak of the interest rate cycle, which means sometime later this year, rates will start going down. So that's the first trigger."

"Second is, there is always a lag in transmission," he said, speaking against the backdrop of the performance in the last couple of quarters on the deposit side as well on the lending side.

On unsecured lending, Bajaj said Bajaj Finserv took preemptive measures to mitigate risks to its portfolio, resulting in satisfactory performance. However, he acknowledged ongoing industry challenges and stressed the importance of continued vigilance.

On the topic of Paytm Payments Bank, Bajaj refrained from offering an opinion but emphasised the importance of regulatory compliance, risk management, and robust control systems for long-term success in the financial ecosystem.