 "NBFCs")
The asset quality of non-banking finance companies will see elevated stress levels in the near term due to the second wave of the pandemic, but the stress will subside subsequently as collection efficiencies improve and restructuring picks up, says rating agency Icra.
The spike in stress in the asset quality of the shadow banks stems from a combination of factors. Unlike last year, there was no moratorium, which prevented the movement in the non-performing asset quality cycle. Secondly, the collection efficiency was severely impacted because of the restrictions imposed to spread the check of the virus.
According Icra's assessment, the
