Krishnan sitaraman, Researcher

New Delhi, July 29 Assets under management (AUM) of NBFCs are likely to contract by 1-3 per cent in the current fiscal, for the first time in two decades as fresh disbursals drop sharply, according to Crisil Ratings.It said that excluding the top five NBFCs, de-growth is expected to be sharper at 7-9 per cent.In a statement, Crisil however said: "Lower repayments during the loan moratorium period (March 1, 2020, to August 31), and capitalisation of interest accumulated, will however help limit the de-growth."The rating agency noted that the major factors impacting the disbursements include the challenging macroeconomic environment, sharper focus on liquidity as incremental funding is not easy to come by for many players in a confidence-sensitive scenario.Further, stiff competition from banks as funding costs for many NBFCs remain relatively high and the tightening of underwriting standards by NBFCs amid weak economic activity and expectations of increasing delinquencies would also impact disbursal.Krishnan Sitaraman, Senior Director, Crisil Ratings said: "While disbursements across segments are expected to fall 50-60 per cent, AUM trajectory will differ by segment. Crisil's analysis of the largest segments of the NBFC AUM pie shows that most segments could witness contraction in the current fiscal.He was of the view that the silver lining would be gold loans, which constitute 5 per cent of the AUM. Growth here is seen to be relatively higher as more individuals and micro enterprises go for it to meet immediate funding needs.( With inputs from IANS )

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Pahalgam Terror Attack

Tahawwur Rana

IPL 2025

CM Devendra Fadnavis

Mumbai Local

Weather Update

Krishnan SitaramanFOLLOW

Krishnan sitaraman, Latest News

Business :Bank credit to grow 400-500 bps higher at 9-10% next fiscal

Mumbai, March 1 Bank credit is seen growing 400-500 basis points (bps) higher at 9-10 per cent next ... ...

Business :NBFC stressed assets may hit Rs 1.5 to 1.8 lakh cr by fiscal-end

Mumbai, Feb 16 Stressed assets of non-banking financial companies (NBFCs) are expected to reach Rs 1.5 to 1.8 ... ...

Business :NBFC delinquencies could see up to 250 bps spike this fiscal

New Delhi, Sep 18 The rapid increase in Covid-19 afflictions and intermittent lockdowns will increase asset quality challenges ... ...

Business :Assets under management of NBFCs to contract in FY21: Crisil

New Delhi, July 29 Assets under management (AUM) of NBFCs are likely to contract by 1-3 per cent ... ...