Assets beneath administration (AUM) of non-banking monetary firms (NBFCs) is anticipated to develop at 14-17% within the next fiscal on the again of continued sturdy credit score demand throughout retail mortgage segments, CRISIL Ratings mentioned in a report.
Growth could also be reasonably decrease than 16-18% anticipated within the present fiscal as unsecured retail loans, the quickest rising phase within the NBFC AUM pie to date, are likely to see a comparatively slower growth as NBFCs recalibrate their methods due to the current regulatory measures issued by the Reserve Bank of India (RBI), the score company mentioned.
“Going forward, diversification in product offerings and funding profile will be key constituents of their growth strategy,” CRISIL mentioned.
“The recent regulatory measures are targeted at unsecured retail loans and do not impact the secured asset classes where growth is expected to be steady,” Gurpreet Chhatwal, Managing Director, CRISIL Ratings mentioned. “Importantly, the regulatory changes do not impact Housing Finance Companies,” he added.
“The two largest traditional segments of home loans and vehicle finance now comprise 25-27% each of the NBFC AUM. Both segments are expected to report steady growth,” he mentioned.
Mr. Chhatwal mentioned within the dwelling mortgage phase, a growth of 12-14% next fiscal can be pushed by HFCs’ give attention to reasonably priced dwelling loans (ticket sizes of lower than ₹25 lakh), whereas automobile finance would develop at 18-19% this fiscal and maintain 17-18% growth next fiscal on the again of strong underlying-asset gross sales.
“Unsecured loans is now the third largest segment in the NBFC AUM pie. And this segment is likely to see a moderation in growth due to the regulatory measures which affect NBFC AUM growth on both their asset and liability sides on three fronts,” he additional mentioned.
