He was of the view that the silver lining would be gold loans, which constitute 5 per cent of the AUM. What a joke ? Assets under management (AUM) of non-banking financial companies1 (NBFCs) are expected to de-grow 1-3% (see chart in annexure) in the current fiscal as fresh disbursements drop sharply. Assets under management (AUM) of non-banking financial companies 1 (NBFCs) are expected to de-grow 1-3% (see chart in annexure) in the current fiscal as fresh disbursements drop sharply. Choose your reason below and click on the Report button. This will alert our moderators to take actionNBFC assets may de-grow 1-3% in FY21 as fresh disbursements drop sharply: CrisilMumbai: Assets under management of non-banking financial companies are likely to witness a decline in the current fiscal as fresh disbursements have witnessed a substantial drop, says a report.
Crisil’s analysis of the largest segments of the NBFC AUM pie shows that most segments could witness contraction in the current fiscal.He was of the view that the silver lining would be gold loans, which constitute 5 per cent of the AUM. New Delhi, July 29 : Assets under management (AUM) of NBFCs are likely to contract by 1-3 per cent in the current fiscal, for the first time in two decades as fresh disbursals drop sharply, according to Crisil Ratings.It said that excluding the top five NBFCs, de-growth is expected to be sharper at 7-9 per cent.In a statement, Crisil however said: “Lower repayments during the loan moratorium period (March 1, 2020, to August 31), and capitalisation of interest accumulated, will however help limit the de-growth.”The rating agency noted that the major factors impacting the disbursements include the challenging macroeconomic environment, sharper focus on liquidity as incremental funding is not easy to come by for many players in a confidence-sensitive scenario.Further, stiff competition from banks as funding costs for many NBFCs remain relatively high and the tightening of underwriting standards by NBFCs amid weak economic activity and expectations of increasing delinquencies would also impact disbursal.Krishnan Sitaraman, Senior Director, Crisil Ratings said: “While disbursements across segments are expected to fall 50-60 per cent, AUM trajectory will differ by segment. In a statement, Crisil however said: "Lower repayments during the loan moratorium period (March 1, 2020, to August 31), and capitalisation of interest accumulated, will however help limit the de-growth." Excluding the top 5 NBFCs, the de-growth is expected to be even sharper at 7-9%. According to a Crisil report, in FY20, the asset under management (AUM) of Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. Excluding the top five NBFCs, the de-growth is expected to be even sharper at 7-9 per cent, it added. Posted By IANS Desk Published: 29th July 2020 4:26 pm IST. Further, stiff competition from banks as funding costs for many NBFCs remain relatively high and the tightening of underwriting standards by NBFCs amid weak economic activity and expectations of increasing delinquencies would also impact disbursal. He was of the view that the silver lining would be gold loans, which constitute 5 per cent of the AUM. The rating agency noted that the major factors impacting the disbursements include the challenging macroeconomic environment, sharper focus on liquidity as incremental funding is not easy to come by for many players in a confidence-sensitive scenario.
Assets under management of India’s NBFC industry are expected to shrink 1-3% by March 2021, according to a Crisil report.
The rating agency said “assets under management of non-banking financial companies (NBFCs) are expected to de-grow 1-3 per cent in the current fiscal as fresh disbursements drop sharply”. However, barring the top 5 NBFCs, the de-growth is expected to be even sharper at 7-9%, noted CRISIL. Assets under management of NBFCs to contract in FY21: Crisil.
The rating agency said "assets under management of non-banking financial companies (NBFCs) are expected to de-grow 1-3 per cent in the current fiscal as fresh disbursements drop sharply". Growth here is seen to be relatively higher as more individuals and micro enterprises go for it to meet immediate funding needs.To contribute an article to Siasat Daily or enquire about syndication, please write to Copyright © Siasat Daily, 2020.
Growth here is seen to be relatively higher as more individuals and micro enterprises go for it to meet immediate funding needs.
The rating agency said "assets under management of non-banking financial companies (NBFCs) are expected to de-grow 1-3 per cent in the current fiscal as fresh disbursements drop sharply". All Rights Reserved Excluding the top 5 NBFCs, the de-growth is expected to be even sharper at 7-9%. Assets under management (AUM) of non-banking financial companies (NBFCs) may contract 1 to 3% in FY21, for the first time in almost two decades as fresh disbursements are expected to drop sharply, sa Assets under management (AUM) of NBFCs are likely to contract by 1-3 per cent in the current fiscal, for the first time in two decades as fresh disbursals drop sharply, according to Crisil Ratings. Growth here is seen to be relatively higher as more individuals and micro enterprises go for it to meet immediate funding needs. NBFC assets may de-grow 1-3 pc in FY21 as fresh disbursements drop sharply: Crisil According to a Crisil report, in FY20, the asset under management (AUM) of shadow banking sector is estimated to have grown by 4-6 per cent, a Crisil report said. All Rights ReservedAssets under management of NBFCs to contract in FY21: Crisil For reprint rights: NBFC assets may de-grow 1-3% in FY21 as fresh disbursements drop sharply: CrisilMorgan Stanley prefers mid-cap NBFC stocks over larger peersWhat a calamity ? The rating agency said "assets under management of non-banking financial companies (NBFCs) are expected to de-grow 1-3 per cent in the current fiscal as fresh disbursements drop sharply".