NBFCs will require additional funding of Rs.1.9-Rs.2.2trn, says ICRA
ICRA Ratings has said that Non-banks (NBFC [excluding infra NBFCs] and HFCs) AUM growth would revive in FY2022 to about 7-9% vis a vis a flattish performance in the current fiscal, according to ICRA Ratings’ outlook and survey of the NBFC sector.
Additional funding requirement in FY2022, apart from the refinance of existing credit lines, is estimated at Rs.1.9- 2.2 trillion, said ICRA on 6 Jan 2021, citing the survey.
“Continued asset quality pressures in FY2022 along with slower growth would keep the earnings performance weaker than pre-Covid levels,” the rating agency said.
“Convergence in issuer and investor expectations on growth, funding requirement and capital raise would be crucial for sustained improvement.” #banking #financing #economy /fiinews.com
