The Reserve Bank of India’s (RBI’s) decision to defer the implementation of revised NPA norms by six months for finance companies will save them from the burden of making additional provisions, especially in the fourth quarter ending March 2022 (FY22).
Krishnan Sitaraman, senior director and deputy chief ratings officer, CRISIL Ratings, said the RBI’s move is a respite for non-banking financial companies (NBFCs), especially those into vehicle, MSME and unsecured lending. The norms, notified on November 12, 2021, had led to an uptick in reported GNPAs of NBFCs in the December quarter. A deferral would curb that trend, and support their March 2022 quarter financials.
“The extension to September 2022 will give some breather to NBFCs’ bottom line in Q4FY22. It could