Non-bank financing companies are finally shedding the Covid-era stress and could see a 40 basis point improvement in bad loan numbers, domestic rating agency ICRA said on Thursday. The rating agency also non-banks to surpass pre-Covid level profits in the current fiscal year due to higher growth in assets under management, moderation in asset quality indicators and controlled credit costs.
While growth will be broad-based across various sub-sectors, microfinance and personal loans will be leading the growth chart. On the other hand, vehicle financing loans (commercial vehicle finance, passenger vehicle finance), which has remained significantly subdued since FY20, are also expected to report higher growth numbers, following an improvement in the operating environment.
