‘NBFCs may see growth revive in FY22’

Share this:

Growth in property beneath administration (AUM) of non-banking monetary firms, or NBFCs (excluding infrastructure NBFCs), and housing finance companies will revive in FY22 to about 7-9% vis-a-vis a flat efficiency throughout FY21, stated ICRA.

The findings have been based mostly on a survey performed throughout 60 NBFCs, which collectively account for greater than 50% of the sectoral AUM and about 23 traders.

“Growth in FY22 is envisaged to be driven by the improvement in demand from all the key target segments vis a vis current fiscal, which was impacted by the COVID-19 lockdown,” stated A. M. Karthik, V-P, sector head monetary sector scores, ICRA.

“Growth in the vehicle finance [commercial vehicle, passenger vehicle etc], business loans including loan against property and other commercial lending segments, which are closely linked to the economic activities are expected to take longer to register a reasonable revival,” he stated.

He stated non-bank exposures to the industrial actual property and different massive company/wholesales exposures are anticipated to register a decline even in FY2022 after the decline of about 15% in FY2020 and about 10% anticipated contraction in FY2021.

As per the survey, majority (70%) of issuers and traders don’t anticipate co-lending to account for lower than 10% of non-bank AUM over the following 2-Three years.

“Access to adequate funding, therefore, would remain critical for the sector to register a sustained improvement in growth,” he added.

You have reached your restrict without spending a dime articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly model of articles from the day’s newspaper in a single easy-to-read record.

Unlimited Access

Enjoy studying as many articles as you want with none limitations.

Personalised suggestions

A choose record of articles that match your pursuits and tastes.

Faster pages

Move easily between articles as our pages load immediately.


A one-stop-shop for seeing the newest updates, and managing your preferences.


We transient you on the newest and most vital developments, thrice a day.

Support Quality Journalism.

*Our Digital Subscription plans don’t presently embrace the e-paper, crossword and print.

Source hyperlink

Comment here