01-01-1970 12:00 AM | Source: Accord Fintech
Around 42% NBFCs expect over 15% growth in AUM in FY22: ICRA Ratings
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ICRA Ratings in its latest survey has said that around 42 percent of non-banking financial companies (NBFCs) expect a growth of more than 15 per cent in their asset under management (AUM) in fiscal 2021-22. It said NBFCs growth expectations have moderated vis-a-vis the expectations six months earlier. This follows the possible impact of Covid 2.0 on business in Q1 FY2022. With most of the lenders (74 per cent in AUM terms) indicating an up to 10 per cent AUM growth, it expects the growth for the overall industry to be about 7-9 per cent for FY2022.

According to the survey, within the non-bank finance sector, segments like MFIs, SME-focussed NBFCs and affordable housing finance would continue to record much higher growth than the overall industry averages, supported by good demand and lower base, she said. It said with gradual easing of lockdowns and moderation in fresh cases of Covid and with increased vaccination coverage, the lenders are optimistic on growth pick-up in balance part of FY2022 and expect it to be higher than the growth seen in FY2021.

However, it said the non-bank finance companies are expecting the asset quality related pain to persist in the current fiscal as well. It also said overall, 87 per cent of issuers (by AUM) expect reported gross stage 3/ NPAs to be either same or higher than March 2021 levels, which in turn will keep the credit costs elevated. Over 90 per cent of lenders (by AUM) expects the credit costs to remain stable or increase further over FY2021 levels.