Ajay Piramal, Chairman, Piramal Group is confident that there would be no defaults from their financial services business and that funds from CDPQ & rights issue would be enough to meet all requirements.

“Large investors have actually spoken to us and told us about their commitment to invest in the rights issue. Even the promoters are backing it and have underwritten the issue," he said during an exclusive with CNBC-TV18, adding that CDPQ was also due any time this month.

Talking about cost of funds and redemptions, Piramal said, “Today there is nobody lending in the wholesale, which means cost of funds to us in the short-term have been higher. But it also means that we can actually pass on that cost to our customers as well because they don’t have opportunities to raise funds from others. So the net interest margins (NIMs) will still remain similar than what it was when the cost of funds were lower for us and we were lending at lower rates.”

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“When we do short-term lending, it is because we know that there are long-term funds which are going to come in. So it is not that it is just short-term, just for few months and then you get another short-term and you keep passing the hat from one hand to the other," he said. "This short-term lending was because we knew that the rights issue will come. It is time for procedure and therefore in today’s environment one needs to be a little more sure because delays happen every time,” he added.

He also said all options including securitisation of assets was part of the fund raising options. "We know that we will not have a default," he confirmed.