Higher demand could offset competitive pressures for housing finance cos

Can Fin Homes would see credit costs normalize after it took a provision of Rs 40 crore for fraud in Q2FY24 but net profit may fall by 5.0 per cent QoQ to Rs 1,390 crore

The latest Reserve Bank of India (RBI) reports indicate a pickup in credit growth for non-banking financial companies (NBFCs) along with improving profitability. However, the regulator also cautioned NBFCs against excessive reliance on bank funding and risks in unsecured retail loans. The report also highlighted elevated competitive intensity for NBFCs from banks in secured segments such as housing, vehicles and gold loans.

The RBI’s stress-test projections show NBFCs’ non-performing assets (NPAs) should decline further to 3.8 per cent by September 24, according to its baseline scenario. In a high-risk case scenario, NBFCs’ non-performing loans could pick up to 6.3 per