CRISIL study on NPAs: NBFC stressed assets may hit Rs 1.5-1.8 lakh crore by FY21
Stressed assets of non-banking financial services companies (NBFCs) are expected to reach Rs 1.5-1.8 lakh crore, or 6.0-7.5 percent of the asset under management (AUM) by the end of the financial year 2021, according to credit rating agency Crisil.
Stressed assets of non-banking financial services companies (NBFCs) are expected to reach Rs 1.5-1.8 lakh crore, or 6.0-7.5 percent of the asset under management (AUM) by the end of the financial year 2021, according to credit rating agency Crisil.
However, the one-time Covid-19 restructuring window and MSME restructuring scheme will limit the reported gross non-performing assets (GNPA) of the NBFC, Crisil said.
It noted that unlike previous crises, current challenges on account of COVID-19 impacted almost all NBFC asset segments.
Most impacted segment as per CRISIL to see deterioration in asset quality in the NBFC sector is real estate finance followed by unsecured loans i.e. personal loans and consumer loans.
Stressed asset estimates across segments for NBFCs
Gold loans | ~3-5% | 4.2% | 1.9% | 99%+ | - |
Home loans | 35-40% | 0.9% | 1.2% | 98-99%+ | 1.8-2.0% |
Vehicle finance | 20-25% | 4.9% | 6.0% | 90-95% | 9.0-10.0% |
MSME* | 10-15% | 3.2% | 3.4% | 80-85% | 7.5-8.0% |
Unsecured loans** | ~3-5% | 2.3% | 2.2% | 80-85% | 9.5-10.0% |
Real estate finance | 10-15% | 1.8% | 4.5% | 75-80% | 15.0-20.0% |
Overall NBFCs : Rs 1.5-1.8 lakh crore | |||||
First Published: Feb 16, 2021 1:48 PM IST
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