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Gross NPAs of HFCs are estimated to increase to 2.5-3% in FY21: Icra

The situation in the non-housing segment is expected to be worse

Housing finance, loans, home, NBFC, IBC, realty, real estate
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Supreeta Nijjar, vice-president of financial sector ratings at the firm, said home loans are expected to show higher resilience on the asset quality front vis-à-vis other asset classes owing to their secured nature and majority also being self-occupied.

Abhijit Lele Mumbai
With severe economic disruptions impacting cash flows of borrowers, the asset quality of housing finance companies (HFCs) is likely to worsen, said rating agency ICRA on Friday.

Gross non-performing assets (NPAs) of HFCs are estimated to increase to 2.5-3 per cent in FY21 from an estimate of 1.7 per cent as of March this year.

The situation in the non-housing segment is expected to be worse, leading to overall GNPAs of 3-4.5 per cent by the end of FY21, from an estimated 2.5 per cent as of FY20.

Supreeta Nijjar, vice-president of financial sector ratings at the firm, said home loans are expected

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First Published: Jun 27 2020 | 2:23 AM IST

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