Non-bank financial entities' restructured loans to rise 3.3% by March: ICRA

Covid-19 and lockdowns to slow down its spread have affected the cash flow of borrowers, says agency

Restructured loan books of non-bank financial groups may double to 3.1-3.3 per cent by March 2022 from 1.6 per cent in March 2021, hurt by the second wave of Covid-19 infections hitting borrowers, rating agency ICRA has said.

Covid-19 and lockdowns to slow down its spread have affected the cash flow of borrowers and delayed economic recovery, according to ICRA. Non-bank financial entities cover finance companies and housing finance firms (HFCs).

The Reserve Bank of India (RBI) has allowed lenders to restructure their credit, while maintaining the standard asset tag in FY21. The central bank has included loans to small businesses, which