The Reserve Bank of India (RBI) is scheduled to hold a crucial meeting today with a select group of upper-tier Non-Banking Financial Companies (NBFCs), multiple sources aware of the matter told CNBC-TV18. The meeting aims to foster communication between these key financial entities and the regulatory body, prompting speculation on the agenda and potential outcomes.

Among the NBFCs invited to the meeting are names like Shriram Capital, Tata Capital, Piramal Capital, and Mahindra Finance, as per people in the know. While the RBI has remained tight-lipped about the specific topics to be discussed during the meeting, NBFC sources believe RBI could potentially delve into recovery-related measures, the impact of the First Loss Default Guarantee (FLDG), and the identification of potential stress areas in terms of asset quality.

The meeting is expected to be presided over by the Governor of the Reserve Bank of India, Shaktikanta Das, CNBC-TV18 has learnt. Along with the Governor, other senior officials from the RBI are also expected to participate in the discussions.

One of the central issues that may come under the spotlight is the trajectory of asset quality in the NBFC sector. Over the past 6-8 months, NBFCs have made substantial progress in improving their asset quality since the peak of the COVID-19 pandemic. Gross Non-Performing Assets (GNPAs) have witnessed a notable decline, dropping from approximately 7.2 percent during the height of the pandemic to 4.3 percent as of March 2023.

The meeting is expected to take place in the second half of the day at the Reserve Bank of India headquarters in Mumbai, CNBC-TV18 has learnt.

(Edited by : C H Unnikrishnan)

First Published:Aug 25, 2023 1:37 PM IST