NBFC Results Preview - Second Wave To Be A Dampener In Q1: Prabhudas Lilladher
An employee counts cash a branch of Muthoot Finance Ltd., one of India’s leading providers of gold-based loans, in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg) 

NBFC Results Preview - Second Wave To Be A Dampener In Q1: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

While early green shoots were visible closer to Q4FY21, the second wave impact led to U-turn with non-bank finance companies expected to take huge brunt.

We reckon this impact to stand pronounced than the first wave especially when it comes to asset quality. Collection efficiencies across business segments took a toll in the months of May-June (CE <60%), due to stringent lockdowns followed by disruption in business activities. With regulatory dispensations behind, we will closely monitor credit profiles of micro financiers, small ticket MSME and vehicle financiers.

We also note good resilience shown by housing and gold lending across pandemic quarters.

Click on the attachment to read the full report:

Prabhudas Lilladher Banking Sector Q1FY22 Preview July 6.pdf


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