Second Covid-19 wave: NBFCs brace for defaults, grim business prospects

The collections are down as staff is not able to reach out to customers.

Topics
NBFCs | Coronavirus | Indian Economy

Subrata Panda & Abhijit Lele  |  Mumbai 

With falling collections in the second Covid wave and rising pressure on borrowers’ earnings, finance companies are staring at a rise in defaults and grim business prospects in the near term. The situation is even more challenging for small finance firms and microfinance institutions (MFIs) — many of which are unrated.

They struggle to get funding support, while their borrowers hold back repayments to tide over the pandemic. The refinancing window (by financial institutions) needs a rehaul to facilitate access to them. Karthik Srinivasan, group head-financial sector ratings, ...

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First Published: Fri, May 21 2021. 06:10 IST
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