Consumer loans may be the next big headache for NBFCs: RBI report

NBFCs are facing the highest delinquency levels in all the sub-segments of consumer loans except for loans against property

Gross non-performing assets (NPAs) of non-banking financial companies (NBFCs) have risen from 5.8 per cent in 2017-18 to 6.6 per cent of their loans in 2018-19 even as net NPAs declined by 10 basis points from 3.8 to 3.7 per cent in the same period, the Reserve Bank of India’s (RBI’s) Financial Stability Report has said.
 
Moreover, the capital-to-risk weighted asset ratio (CRAR) of NBFCs hovered around 19.3 per cent as of March this year compared to 22.8 per cent in the same month last year.
With gross NPAs on the rise, the consumer loans segment may become a