RBI moves, asset quality to push NBFCs slow down asset growth to 15 pc in FY25, FY26: Crisil
RBI's regulatory initiatives and asset quality trends will push non-bank lenders to slow down their growth in asset under management (AUM) to 15-17 per cent in the current fiscal and next, domestic rating agency Crisil said on Monday. The sector had achieved a handsome growth of 23 per cent in the AUM in FY24, the agency said, adding that even with the slower growth, the AUM expansion will be higher than the 14 per cent of the last decade.
Entities will opt for «sustainable growth» because of the regulatory environment and asset quality trends, the rating agency said, adding that the present situation will lead to recalibration in strategies.
RBI had in November last year increased the risk weights on banks' lending to NBFCs along with the lending to unsecured loans, where NBFCs are very active. Additionally, the micro loan segment is also showing signs of stress on asset quality lately.
The agency's chief rating officer Krishnan Sitharaman said the regulatory landscape, wherein the compliance actions have also intensified, will have a bearing on the way the sector operates, and added that RBI moves are influenced by ensuring systemic risks are curtailed and also towards customer protection.
Crisil's managing director Subodh Rai said at an overall level, there is not much volatility in the delinquency levels for NBFCs, but added that the microfinance and unsecured lending are showing some uptick.
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