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Business News: Loan collections for non-bank lenders surpass pre-second wave levels: ICRA

Business News: Loan collections for non-bank lenders surpass pre-second wave levels: ICRA
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Covid-19 resurgence may derail recovery in Indian NBFC sector: Agencies


Rating agencies Icra, Fitch and its domestic affiliate India Ratings (Ind-Ra), said today that the recent spike in Covid-19 cases and associated lockdowns, though localised, could adversely impact non-banking companies (NBFCs). It could also act as a dampener for the securitisation market, affecting fund-raising for NBFCs in the near term and may delay recovery in the sector.
India s non-bank financial institutions (NBFI) face renewed asset quality and liquidity risks amid a second wave of coronavirus infections. This may postpone the recovery in the sector, according to Fitch Ratings.
The challenges are likely to increase if recent restrictions to contain the pandemic are expanded or prolonged, leading to greater economic and operational disruption. Expanded curbs could derail the fragile recovery in India s NBFC sector. ....

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