INSUBCONTINENT EXCLUSIVE:
SME credit is expected to grow at 23-25 per cent in FY19, said Icra.Mumbai: Retail loan book of non-banking financial companies (NBFCs) is
likely to grow at 19-21 percent in the current fiscal year, driven by the high demand for commercial vehicle (CV) loans, said a report
NBFCs being the key financiers to the CV segment would benefit from the expected new vehicle sales growth and demand for used vehicles in
FY19, Icra said in its report today
The rating agency said it "expects the NBFC-retail credit, which stood at Rs 7.5 trillion as on March 31, 2018,to expand at 19-21 per cent
FY19, according to Icra, driven by sizeable unmet demand, increased working capital requirement post GST implementation and limited credit
The report found the share of unsecured personal credit and micro finance together increasing to 15 per cent in March 2018, from 8 per cent
in March 2015, growing at a CAGR of 45 per cent
head (financial sector ratings), Icra, said NBFCs are focusing on unsecured credit more to improve product diversification while also
chasing higher business yields
"Better borrower seasoning with NBFCs, availability of credit bureau data and access to improved information technology and credit
assessment systems supplemented NBFC credit to this segment," he said
Meanwhile, the retail asset quality of NBFCs improved in FY18, with 90 days past due (dpd) declining to 4.4-4.5 percent, from 4.7-4.8 per
Asset quality was also supported by a better or a relatively stable performance indicators of key asset classes, namely CV, SME credit
by TheIndianSubcontinent staff and is published from a syndicated feed.)
