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NBFCs: Investors should brace for full impact of liquidity crunch

With funding structures changing, growth pangs may be most visible in Q2

NBFCs: Investors should brace for full impact of liquidity crunch

LIC Housing Finance and L&T Finance Holdings published their September quarter (Q2) results over the past weekend. Net profit growth wasn’t a worry. What investors of non-banking finance companies (NBFCs) have to be cognizant of, however, is that growth is well off the past levels. LIC Housing’s 14 per cent loan growth was quite off the 18 per cent levels registered until two quarters ago, and same is the case with L&T Finance, indicating, for the first time in a year, that growth may be a tough chase for NBFCs. Analysts at Emkay Global expect NBFCs in their coverage to post 10 ...