NBFC disbursement to dip by 50-60% in Q1FY22, bad loans set to rise: Icra

The disbursements by non-banks--finance and housing companies--is likely to decline by 50-60 per cent in the first quarter ended June 2021 amid restrictions imposed through lockdown to contain spread of Covid-19 pandemic. However, the sector is expected to post a healthy revival in the latter part of the year, according to rating agency Icra.

The sectoral Asset Under Management (AUM) growth is pegged at 7-9 per cent for FY2022 vis-a-vis four per cent in FY2021. The low base and growth in disbursement of 6-8 per cent to support AUM growth.

Rating agency said in a statement that pressure on asset quality will