25 YEARS IN INDIA: LEADING WITH IMPACT
Summary snapshot
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Key Performance
Indicators
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NPA and Risk
Management
Advances
Deep-dive
Other trends
NBFC credit growth has recovered post pandemic to 10.3%; major revival observed in Diversified NBFC, MFI
Profitability boost due to reduction in credit costs; MFI ROA increased by 100 bps, Gold NBFCs most hit while
HFCS maintained RoA of 1.8%
Higher NIMs at 5.1% on account of higher yields; CIR for NBFCs inching up to pre-pandemic levels
Bank financing continues to support NBFCs; MFs gradually starting to increase NBFC exposure post liquidity
crises; Securitization deals picked up to Rs 560 Bn in Q4FY22
Improved collection efficiency to lower GNPAS gradually going forward
Stressed assets for MSME, MFI and Auto segment expected to be at elevated levels (8-11%); Gold best placed
IRAC norms put into effect - daily recognition of NPAs and upgrading NPA only after payment of all dues
Auto Loan: New PVs and CVs continue to dominate the book; tractors benefited from healthy crop harvest
Gold Loan: Demand driven by sharp increase in gold prices; rising share of online loans
Personal Loans: Uptick witnessed in FY22 with economy normalizing
Home, MSME and MFI Loans: Economic revival, government support to boost credit growth
NBFC bond yields inching up, but G-spread at historical lows
Digital adoption increasing focus on digital acquisition and on-boarding, partnerships with Fintechs and
chat bots leveraged to improve customer service
Recent RBI norms on provisioning to bridge the gap between Banks and NBFCs
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