Data Drive: Rocky ride for NBFCs | The Financial Express

Data Drive: Rocky ride for NBFCs

The asset quality might not improve notably this financial year because of the restructured loan book in the NBFC-CV portfolio.

Data Drive: Rocky ride for NBFCs
With the second wave of the pandemic badly hitting rural borrowers hard—they form a chunk of the NBFC-CV financing clientele—the gross non-performing assets increased in the first half of FY22. (IE)

Non-banking financial companies have edged past other sources when it comes to financing commercial vehicles. Around 91% of used commercial vehicle (CV) financing, which is one-third of the total CV financing industry, comes from NBFCs.

However, with the second wave of the pandemic badly hitting rural borrowers hard—they form a chunk of the NBFC-CV financing clientele—the gross non-performing assets increased in the first half of FY22.

Also read: Budget 2023: MSMEs tell FM Nirmala Sitharaman how to improve access to bank loans

The asset quality might not improve notably this financial year because of the restructured loan book in the NBFC-CV portfolio.

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First published on: 23-11-2022 at 04:30 IST