Asset Growth Of NBFC May Reach A Four-year High This Fiscal

Asset growth of NBFC may reach a four-year high this fiscal: Rating agency Crisil.

The contribution of NBFC companies increasing to the country’s economy, and asset growth is the highest in four years.

The economy of the country is growing rapidly. Due to this, all the sectors of the country are showing good growth.

Meanwhile, a rating agency said on Monday that the asset growth of non-banking finance companies (NBFCs) may reach a four-year high of 11-12 percent this fiscal.

Rating agency Crisil said that after the Corona epidemic, in the last few years, the asset growth of the country’s NBFC companies has been witnessing a steady increase.

In the last financial year 2021-22, it was 5 percent.

Did not cross pre-covid level.

According to a report by the news agency, Crisil’s Deputy Chief Rating Officer Krishnan Sitharaman says that asset growth is still below pre-Covid levels after reaching double digits.

He said that in the years before Corona, the assets growth was about 20 percent.

Good growth in the vehicle segment.

CRISIL further stated that NBFCs have spent half their capital on vehicle finance.

The vehicle segment is expected to witness a growth of 11-13 percent in FY 2022-23, it was 3 to 4 percent in FY 2020-21 and FY 2021-22.

The huge growth in the unsecured loan segment.

CRISIL Director Ajit Veloni has said that unsecured loans are the second largest segment for NBFCs after vehicles.

In this financial year, it can cross the pre-covid level growth rate of 20-22 percent. Unsecured loans constitute 20 percent of the total asset book of NBFCs.

Growing consumption in the country.

The country’s economy is growing at the rate of 7.3 percent in this financial year. Due to this, the demand for loans coming from customers is also increasing.

Due to this, demand for property loans from NBFC companies may increase by 10-12 percent and gold loan demand by 10-12 percent.