NBFCs to see stability in FY23; capital, margins, provisioning strengths: Report
Zee News
The agency, which maintained a 'neutral' sector outlook and 'stable' rating outlook for the NBFCs, said its expectations will hold true in the absence of any negative event.
New Delhi: After years of enduring challenges, the non-bank lenders are finally set to witness a normalisation in FY23, a report said on Friday.
The non-banking finance companies (NBFCs) will start FY23 with sufficient capital buffers, stable margins and sizable on-balance sheet provisioning, while adequate system liquidity would aid funding, the report by India Ratings, a domestic credit rating agency, said.
The agency, which maintained a 'neutral' sector outlook and 'stable' rating outlook for the NBFCs, said its expectations will hold true in the absence of any negative event.
Credit growth for entities it rates will rise to 14 per cent in FY23 from 8 per cent in FY22.
Since the default by IL&FS in 2017, NBFCs have faced difficulties which only aggravated with the outbreak of the pandemic, which affected liquidity.
