NBFC's stressed loan figure stood at Rs. 1.80 lakh crore

Mumbai, Ta. 16 February 2021, Tuesday

By the end of March, the number of non-banking finance companies (NBFCs) in the country under stress is expected to reach 3 to 4.50 per cent of their total assets under management. The number of loans under stress is estimated at Rs 1.50 trillion to Rs 1.50 trillion, according to a report by ratings agency Crisil.

However some regulatory measures such as restructuring of loans will limit the increase in gross non-performing assets. The Reserve Bank has taken some steps to prevent Corona from affecting the loan book.

Corona has affected most of NBFC's assets, which were not seen during the previous crisis. During the first quarter of the current financial year, i.e. from April to June, the operations of NBFCs were almost disrupted. The loan disbursement and recovery operations were halted due to Corona.

Although the recovery of loans has improved since the second quarter, the recovery rate is still not at the previous level due to slower cash flow of borrowers in MSMEs, unsecured and wholesale segments.

The number of outstanding loans is increasing in some segments. However, there was no significant impact on gold loans and home loans. Loans provided to real estate companies, vehicle loans and MSME loans will be in the spotlight in the current year.

The biggest challenge in the current financial year is in the unsecured personal loan segment, the Crisil report said.