Banks with exposure to poorly-run NBFCs will have to take

Banks will have to take more haircuts while resolving the stressed loans extended to non- banking lenders who are found wanting on the corporate governance front, Reserve Bank governor Shaktikanta Das warned Thursday.

On the government move to have merge 10 banks to four larger ones, Das said the amalgamations ought to be non- disruptive and affirmed the central bank's support to ensure the same is achieved.

Das' comment on non-banking finance companies (NBFCs) comes at a time when banks are grappling with the resolution of stressed cases like their over Rs 50,000 crore dues from mortgage financier DHFL. The Wadhawans-promoted stressed entity was accused of corporate governance lapses in the past.

"(In resolving the crisis at those) NBFCs which have major governance issues, they (banks) need to take a larger haircut. These are business failures but there is also an element of administrative or governance lapses in them, " Das said while speaking at an event organized by