Content creators mean business
Social media influencers are flipping the rules by first getting followers and then launching products and ...
Retail loan book of non-banking financial companies (NBFCs) is likely to grow at 19-21 per cent in the current fiscal year, driven by the high demand for commercial vehicle (CV) loans, said a report.
NBFCs being the key financiers to the CV segment would benefit from the expected new vehicle sales growth and demand for used vehicles in FY19, Icra said in its report today.
The rating agency said it “expects the NBFC-retail credit, which stood at Rs 7.5 trillion as on March 31, 2018, to expand at 19-21 per cent during FY2019, as key growth drivers for large asset sub-categories remains intact.”
SME credit is expected to grow at 23-25 per cent in FY19, according to Icra, driven by sizeable unmet demand, increased working capital requirement post GST implementation and limited credit availability from banks.
The report found the share of unsecured personal credit and microfinance together increasing to 15 per cent in March 2018, from 8 per cent in March 2015, growing at a CAGR of 45 per cent.
Icra expects growth in this segment to remain robust at about 40 per cent in FY19 as well.
A M Karthik, assistant vice-president and sector head (financial sector ratings), Icra, said NBFCs are focusing on unsecured credit more to improve product diversification while also chasing higher business yields.
“Better borrower seasoning with NBFCs, availability of credit bureau data and access to improved information technology and credit assessment systems supplemented NBFC credit to this segment,” he said.
Meanwhile, the retail asset quality of NBFCs improved in FY18, with 90 days past due (dpd) declining to 4.4-4.5 per cent, from 4.7-4.8 per cent in FY17.
This improvement in asset quality was aided by recoveries and sharp increase in portfolio observed in the second half of FY18, said Karthik.
Asset quality was also supported by a better or a relatively stable performance indicators of key asset classes, namely CV, SME credit (including loan against property), tractor and construction equipment, Icra said.
Social media influencers are flipping the rules by first getting followers and then launching products and ...
Paneer, once alien to the South, has found a lucrative market in Chennai
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Carriers claim that all measures — including pre-flight tests, cabin sanitisation and fresh air inflow — have ...
What filters should you apply when mining for under-the-radar small-cap stocks? Read on to find more
High valuation, intensely competitive landscape and small cap nature of the stock are key risks.
Amid choppiness, the benchmark indices slipped marginally; approach the week with caution
SBI Cards (₹1,032.7): Witnesses fresh breakoutBetween September and December last year, the stock of SBI Cards ...
A virus swept aside 2020 plans to mark the 250th year of the birth of Beethoven. We need the German composer’s ...
On the day the oleander baby was born, there was a steady, happy drizzle. Madhu woke up feeling unsteady. The ...
Mr Pandya rose from his recently inherited Japanese swivel chair and walked to observe his recently inherited ...
Marie leaned back in the chair, holding the brandy to her chest, the rain tapping on the windowpanes. She ...
Social media influencers are flipping the rules by first getting followers and then launching products and ...
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Paneer, once alien to the South, has found a lucrative market in Chennai
The Flipkart kids playing adults are back — this time to push the home grown e-commerce marketplace’s grocery ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor