KOLKATA: Stressed assets of non-banking financial companies (NBFCs) are expected to reach Rs 1.5-1.8 lakh crore, or 6.0-7.5 per cent of the assets under management (AUM), by the end of the current fiscal owing to the pandemic disruptions, rating agency CRISIL said on Tuesday.
However, it said that the one-time COVID-19 restructuring scheme for micro, small and medium enterprises (MSME) by the Reserve Bank of India (RBI) will limit the reported gross non- performing assets (GNPA).
CRISIL said that unlike previous crises, the current challenge on account of the pandemic impacted almost all NBFC assets. "This fiscal has brought unprecedented challenges to the fore for NBFCs. Collection efficiencies, after deteriorating sharply, have now improved, but are still not at pre-pandemic levels. There is a marked increase in overdues across certain segments and players," CRISIL rating senior director Krishnan Sitaraman said.
Sitaraman said that nevertheless, gold loans and home loans should stay resilient, with the least impact among segments. According to CRISIL estimates, the highest share of stress assets will be in real estate finance that would account for 15-20 per cent.
Crisil said that while vehicle loans and unsecured loans will account for 9-10 per cent each of the bad assets, MSME's is expected to account for 7.5-8 per cent of the projected bad assets by the end of the fiscal.