You are here: Home » Finance » News » NBFCs
Business Standard

NBFC sanctions contract 32% YoY in Q2 amid Covid-19 pandemic, shows data

The lending in most of the segments, including housing, auto vehicle (personal and commercial) declined sharply

Topics
NBFC | Coronavirus | Indian Economy

Abhijit Lele  |  Mumbai 

loss, economy, shares, stocks, market, investment, savings, gdp, growth, revenue
The overall NBFC sanctions contracted 32 per cent year-on-year (YoY)

The economic disruption due to the Covid-19 pandemic hit businesses of companies badly, causing a sharp contraction in their lending activity in the second quarter ended September 2020. The overall sanctions contracted 32 per cent year-on-year (YoY).

The lending in most of the segments, including housing, auto vehicle (personal and commercial) declined sharply. Only exceptions were used tractors, gold loans, loan against shares, which saw growth in the second quarter of this financial year. The rural economic activity was steady and was relatively less impacted, which supported tractor and gold loan segments.

chart

With gradual unlocking of activities in June, industry begun to see resumption of work. This also got reflection in the sanctions, which were higher in the second quarter over the first quarter across many segments.

The improvement in liquidity for NBFCs, pent-up demand, and better accessibility ahead of the festive season gave traction to activity in the July-September 2020.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 04 2021. 23:20 IST
RECOMMENDED FOR YOU
.