NBFC stress will ease from FY22 with recovery in the economy: Experts

The level of stress in the sector will be less intense as economic activity has been improving gradually

Topics
NBFC | Indian Economy | Economic recovery

Subrata Panda & Abhijit Lele  |  Mumbai 

The stressed asset pool of non-banking financial companies (NBFCs) has swollen since the end of the moratorium. However, this trend is set to turn in the next financial year (FY22) with the recovery in the economy, say industry insiders.

The level of stress in the sector will be less intense as economic activity has been improving gradually, resulting in better collection efficiencies of these lenders. Ratings agency CRISIL in a report estimated that stressed assets of finance companies could reach 6-7.5 per cent of their overall assets under management (AUM), or Rs 1.5-1.8 trillion, by the ...

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First Published: Thu, February 18 2021. 06:10 IST
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