 "NBFCs' AUM to shrink this year: A first in two decades, says CRISIL")
The assets under management (AUM) of finance companies are expected to shrink for the first time in two decades as fresh disbursements drop sharply this year, according to CRISIL. Disbursements across segments are expected to fall by 50-60 per cent as the adverse impact Covid-19 pandemic plays out.
Overall industry AUM may shrink by 1-3 per cent in FY21 with the real estate and structured credit segments experiencing maximum contraction (10-12 per cent). Lower repayments during the loan moratorium period (March 1 to August 31), and capitalisation of interest accumulated will, however, help limit the contraction, it said. A sliver lining in all this will be gold. The gold loan segment would buck the trend with estimated growth of 14-16 per cent.
Overall industry AUM may shrink by 1-3 per cent in FY21 with the real estate and structured credit segments experiencing maximum contraction (10-12 per cent). Lower repayments during the loan moratorium period (March 1 to August 31), and capitalisation of interest accumulated will, however, help limit the contraction, it said. A sliver lining in all this will be gold. The gold loan segment would buck the trend with estimated growth of 14-16 per cent.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%