After Q1 spike, NBFC bad loans to ease in FY22 as collections improve: Icra

Rating agency says the 90-day-plus dues, which touched 6.3% this June, may drop to 5.3% by March 2022 under base scenario

After a spike in stress in the June 2021 quarter, the asset quality profile of non-banking financial companies (NBFCs) and housing finance companies (HFCs) is expected to moderate by March 2022 as the collection efficiency (CE) trend remains encouraging.

Rating agency Icra  said gross non-performing assets (gross NPAs) — the 90-plus day dues — which touched 6.3 per cent this June, may decline to 5.3 per cent by March 2022 under the base scenario.

They could touch a higher level of 5.8 per cent under a stressed scenario. The impact of the expected third wave would be a differentiator.

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