Rate woes of renewable energy firms may stress NBFC books further: Icra

The uncertainty regarding rates in some southern states has led to rating downgrades for power companies that have raised money from lenders

Infrastructure finance companies might have to brace for additional pressure on asset quality from exposure to renewable energy (RE) projects, which face rate risks.

These non-bank finance companies (NBFCs) are already affected by the slow resolution of their stressed thermal energy assets, according to rating agency ICRA. The segment's total exposure to the RE segment was pegged at Rs 90,000 crore at end-September. The trajectory of total infrastructure credit in India (from banks and infrastructure NBFCs) had flattened in the six months ended September 2019, the first half (or H1) of financial year 2019-20. While infrastructure credit grew 19 per cent