NBFC sector under pressure as Covid-19 cases rise, lockdowns resume: Fitch

Challenges likely to increase if recent restrictions to contain the pandemic are expanded or prolonged, says agency.

India's non-bank financial institutions (NBFC) face renewed asset quality and liquidity risks as a second wave of coronavirus infections sweeps the country and could delay recovery in the sector, said Fitch Ratings.

The agency said challenges are likely to increase if recent restrictions to contain the pandemic are expanded or prolonged, leading to greater economic and operational disruption.

Fitch revised India's economic growth forecast for the fiscal year ending March 2022 (FY22) to 12.8 per cent in March 2021, from 11 per cent in the previous forecast in December, due to the unexpectedly strong rebound in economic activity in late 2020 and