Investor Presentaiton
Summary Snapshot (II/II)
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NPA and Risk
Management
• Asset quality of NBFCs is reaching pre-pandemic levels even as they are witnessing a huge jump in
credit demand
Asset quality improved for all NBFC segments except Gold loan NBFCs in FY23
Despite few NBFCs opting to cut capital buffer, NBFC sector remains well capitalized to withstand
shocks
Valuation
Recent trends
Diversified NBFCs commanding premium; most HFCs still trading at discount
NBFCs diversifying funding resources, product portfolio (sectors) and service models
Issuance of NCDs by NBFCs almost doubled in FY23 and surpassed the FY20 levels
Addition of newer products to drive growth
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Breaking traditional grid-locks with aid from FinTechs
Digital lenders are increasingly vying for NBFC license
Post the pandemic, an accelerated shift is witnessed in Digital adoption by NBFCs
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