No guarantees this business will continue to pay for banks

Indian lenders are dealing with strain on their non-funded company publicity, as demand for financial institution ensures has dried up from telecom in addition to engineering and development firms, bankers ET spoke with mentioned.

Non-fund exposures are off-balance sheet gadgets that comprise letters of credit score (LC) and financial institution ensures (BG). Right here, banks do not sanction a mortgage to the borrower however act as a guarantor.

The Division of Telecommunications had final yr