Restructured assets of non-bank lenders are estimated to double to up to 3.3 per cent by March 2022 largely because of the impact of the second wave of the pandemic, a report said on Monday. The same ratio had stood at 1.6 per cent as of March 2021, after the first wave of the pandemic. The pandemic had led the Reserve Bank of India (RBI) to make an exception by launching a loan recast facility for borrowers impacted by COVID-19. This trend is a change from last year, when asset-quality and liquidity fears multiplied after a moratorium on repayments and stringent lockdowns affected collections. Factors supporting the liquidity measures at NBFCs include fundraising through special government schemes, improving collections in the second half of fiscal 2021, and limited disbursements, it said.

Source: Mint July 12, 2021 13:41 UTC