Slippages from restructured NBFC book increased in H1FY23, says Icra

Write-offs remained elevated at 2.1 per cent for NBFCs and 0.5 per cent for HFCs in H1FY23

NBFC, finance, banking

The AUM of NBFCs is expected to go up to Rs 44 trillion by March 2023 and Rs 49 trillion by March 2024, with retail asset classes of NBFCs growing at 12-14 per cent during this period, led by microfinance and personal loans

Subrata Panda Mumbai
Under moratorium as a consequence of forbearance provided by the Reserve Bank of India (RBI) due to the pandemic, a sizeable portion of the restructured book of non-banking financial companies (NBFCs) has slipped into non-performing assets (NPA) in the first half (H1) of 2022-23 (FY23). This has resulted in the asset quality of the sector not improving at the pace it was expected to happen.

According to ICRA’s assessment, 24 per cent of the opening standard restructure book of NBFCs as of March this year has slipped into NPAs, while 17 per cent are making repayments.

In the case of housing finance companies (HFCs), over 10 per cent of this book has slipped into NPAs, while 6.4 per cent are

First Published: Dec 15 2022 | 7:22 PM IST

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