NBFCs' stress assets may rise to Rs 1.5-1.8 lakh crore by FY'21: Crisil

Stressed assets of non-bankingfinancial companies (NBFCs) are expected to reach Rs 1.5-1.8lakh crore, or 6.0-7.5 per cent of the assets under management(AUM), by the end of the current fiscal owing to the pandemicdisruptions, rating agency Crisil said on Tuesday.

However, the one-time COVID-19 restructuring schemefor micro, small and medium enterprises (MSME) by the ReserveBank of India (RBI) will limit the reported gross non-performing assets (GNPA), it said.

Unlike previous crises, the current challenge onaccount of the pandemic impacted almost all NBFC assets,Crisil said.

''This fiscal has brought unprecedented challenges tothe fore for NBFCs. Collection efficiencies, afterdeteriorating sharply, have now improved, but are still not atpre-pandemic levels. There is a marked increase in overduesacross certain segments and players,'' Crisil rating seniordirector Krishnan Sitaraman said.

Nevertheless, gold loans and home loans should stayresilient, with the least impact among segments, Sitaramansaid.

According to Crisil estimates, the highest share ofstress assets will be in real estate finance that wouldaccount for 15-20 per cent.

While vehicle loans and unsecured loans will accountfor 9-10 per cent each of the bad assets, MSME's is expectedto account for 7.5-8 per cent of the projected bad assets bythe end of the fiscal, Crisil said.