NBFCs may see asset quality improve by up to 200 bps going forward: Crisil

RBI postponement of timeline for adhering to new NPA norms, greater economic activity likely to act as tailwinds, says rating agency

The non-banking finance companies may see an improvement in their bad loans ratio by as much as 150-200 basis points, going forward, due to the Reserve Bank of India (RBI)'s postponement of the timeline for adhering to upgraded non-performing assets (NPA) norms and improved economic activity are likely to act as tailwinds for the sector, rating agency Crisil said.

RBI’s decision to defer the implementation of the NPA upgradation norms is expected to provide a reasonable transition time for NBFCs to recalibrate their processes, revamp their collection infrastructure, and persuade borrowers to align with the new dispensation.

“We expect gross