You are here: Home » Companies » News
Business Standard

NBFCs' AUM to shrink this year: A first in two decades, says CRISIL

Disbursements across segments are expected to fall by 50-60 per cent as the adverse impact Covid-19 pandemic plays out

Topics
assets under management | Non-Banking Finance Companies | Crisil

Abhijit Lele  |  Mumbai 

loans, aum, assets, banks
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)

The (AUM) of finance are expected to shrink for the first time in two decades as fresh disbursements drop sharply this year, according to 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.


chart


chart


chart

First Published: Thu, July 30 2020. 01:15 IST
RECOMMENDED FOR YOU