Gross NPAs of HFCs are estimated to increase to 2.5-3% in FY21: Icra

With severe economic disruptions impacting cash flows of borrowers, the asset quality of housing finance companies (HFCs) is likely to worsen, said rating agency ICRA on Friday.

Gross non-performing assets (NPAs) of HFCs are estimated to increase to 2.5-3 per cent in FY21 from an estimate of 1.7 per cent as of March this year.

The situation in the non-housing segment is expected to be worse, leading to overall GNPAs of 3-4.5 per cent by the end of FY21, from an estimated 2.5 per cent as of FY20.

Supreeta Nijjar, vice-president of financial sector ratings at the firm, said home loans are expected