NBFCs with exposure to realty developers stare at fresh trouble

India Ratings revises outlook for NBFC sector to negative; growth to be 10-12%

Wholesale non-banking financial companies (NBFCs), which have huge exposure to real estate developers, could see their asset quality slide as early as the second half of FY20 if refinancing pressure continues, said rating agency India Ratings & Research (Ind-Ra) in its NBFC sector outlook for FY20. Most of these NBFCs have given a moratorium of 18-24 months on the principal amount lent in the last two years. This will end towards the second half of FY20 and the first half of FY21. NBFCs account for about 16 per cent of the total loan outstandings to real estate developers. Of the