CLSA ON NBFCs : 15.12.2021
* RBI has now introduced the "Prompt Corrective Action (PCA) framework for NBFCs. Here's what CLSA has to say about it
* Enhanced Regulatory Scrutiny For NBFCs By RBI
* Key Genesis Of New Regulation Is NBFCs Have Grown Big, Are Systemically Imp Now
• While We Expect No Impact For Most NBFCs, M&M Fin May Increase Provisions
CREDIT SUISSE ON INDIA NBFC SECTOR - 18.08.2021
CreditSuisse on India's #NBFC sector: Preferred picks are Chola, STFC, SBI Cards, and HDFC• Delinquencies for CV, SME, and MFI loans increased 100-200 bp QoQ
• Collection efficiency across the segments has improved • Expect stressed loans to decline in Q2 FY22
• PCR on stressed loans is 15-45%; while it has increased 4-7 pp
• Loan growth for mortgage, tractors, and LAP has held up
• Preferred picks are Chola, STFC, SBI Cards, and HDFC
