Growth in property beneath administration (AUM) of non-banking monetary corporations, or NBFCs (excluding infrastructure NBFCs), and housing finance companies will revive in FY22 to about 7-9% vis-a-vis a flat efficiency throughout FY21, mentioned ICRA.
The findings have been based mostly on a survey carried out throughout 60 NBFCs, which collectively account for greater than 50% of the sectoral AUM and about 23 traders.
“Growth in FY22 is envisaged to be driven by the improvement in demand from all the key target segments vis a vis current fiscal, which was impacted by the COVID-19 lockdown,” mentioned A. M. Karthik, V-P, sector head monetary sector rankings, ICRA.
“Growth in the vehicle finance [commercial vehicle, passenger vehicle etc], business loans including loan against property and other commercial lending segments, which are closely linked to the economic activities are expected to take longer to register a reasonable revival,” he mentioned.
He mentioned non-bank exposures to the industrial actual property and different giant company/wholesales exposures are anticipated to register a decline even in FY2022 after the decline of about 15% in FY2020 and about 10% anticipated contraction in FY2021.
As per the survey, majority (70%) of issuers and traders don’t count on co-lending to account for lower than 10% of non-bank AUM over the following 2-3 years.
“Access to adequate funding, therefore, would remain critical for the sector to register a sustained improvement in growth,” he added.