Tighter norms for stressed loans and upgradation are likely to increase the non-performing assets (NPAs) of finance companies by 160-180 basis points to 6.2-6.4 per cent by March 2022. An increase of up to 80 basis points is expected in the case of housing finance companies, taking the NPA level to 3.8 per cent, according to rating agency Icra.
The potential rise takes into account a revision in norms and slippage from restructured books, with March 2021 as the base. The GNPAs were 4.6 per cent and 3.0 per cent for NBFCs in March 2021.
The Reserve Bank of India's clarification on