Stress in wholesale book of NBFCs to rise further, says CRISIL report

Realty exposure of non-banking financial companies (NBFCs), which is out of moratorium, has a bad loan ratio of over 10 per cent as of September 2019 and the fear is rest of the book under moratorium may go the same way, said rating agency CRISIL. About 30 per cent of the realty book of NBFCs has come out moratorium while 40 per cent of the exposure is still under moratorium. The bad loan ratio of the realty portfolio of NBFCs was 1.8 per cent as of March 2019 and by September it almost doubled to 3.3 per cent. CRISIL said the overall NPA ratio of NBFCs can rise by 30-150 basis points, depending on the asset class as stress in the space is inching amidst the challenging economic environment.

chart