 "Just how many self-regulatory organisations (SROs) are too many? Last week, the Reserve Bank of India (RBI) capped the number of such entities for non-banking financial companies (NBFCs) at “a maximum of two”. And to ensure the smaller NBFCs get a fa")
Don't want to miss the best from Business Standard?
Non-banking financial companies' (NBFCs) retail bad loans are likely to continue rising in FY26 by 20-30 basis points, following years of rapid increases in disbursements that have far outpaced India's nominal GDP growth. Yet the figure will remain lower than the peak of more than five per cent reached in fiscal FY22 during the pandemic, said Moody’s Ratings. The latest goods and services tax (GST) reform could spur demand for vehicle loans, but also increase asset risks because collateral values can decline, and vehicle utilisation can decrease due to increased supply, hurting cash flow for borrowers. Yet the quality of vehicle loans is not likely to deteriorate sharply, underpinned by strong economic conditions.
In FY24, the Reserve Bank of India raised risk weights for unsecured loans and for bank loans to NBFCs - their primary source of funding needed for lending, for the calculation of regulatory capital, while implementing company-specific supervisory measures.
Nonperforming retail loans will rise in fiscal 2025-26
 "Banks")
 "H1B Visa")
 "M Rajeshwar Rao, deputy governor at the Reserve Bank of India")
 "IndusInd Bank")
 "CS Setty, SBI Chairman")
