Asset Liability Mismatch And Its Impact On NBFC Stability At Muthoot Finance
Abstract
This PAPER concentrates on Muthoot Finance and investigates the influence of asset-liability mismatches on the stability of Non-Banking Financial Companies (NBFCs). It investigates the potential impact of different asset and liability maturity profiles on liquidity, profitability, and overall financial health. The investigation looks into how Muthoot Finance effectively addressed these discrepancies. It emphasizes the potential consequences of a downturn, as well as the risks associated with short-term financing for long-term assets. The investigation draws on both primary data from company reports and secondary data from trade journals. It assesses the extent to which regulatory guidelines reduce mismatch risks. Additionally, the investigation looks into the relationship between asset-liability management strategies and investor confidence.