Motilal Oswal: NBFC Turnaround In Sight; Growth To Be Muted; Asset Quality Hit Manageable

Motilal Oswal: NBFC’s Turnaround In Sight; Growth To Be Muted; Asset Quality Impact Manageable

A cashier counts Indian one hundred-rupee banknotes in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We attended Crisil’s annual seminar on the non-banking financial companies, which covered discussions on aspects concerning growth, liabilities, and the asset quality outlook for the sector.

From flattish asset under management in FY21, the NBFC sector is likely to see a rebound in growth to 5-6% YoY in FY22.

However, this would be driven by the top five NBFCs alone. Excluding these NBFCs, the sector is likely to witness flattish AUM in FY22 as well.

Home loans and gold loans remain the key growth drivers with AUM growth in the high single digits and low teens, respectively.

Click on the attachment to read the full report:

Motilal Oswal NBFC Sector Update.pdf
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