“Moratorium uptake was higher in April and May, while collections were slack with a stringent lockdown in place. Though collections have improved since June as the economy
began opening up, the pace of improvement and the extent of ultimate credit losses will be the key monitorables going forward,” CRISIL
said in its note.
“While there has been an improvement across segments over the past four months, collections in the wholesale, MSME, and unsecured segments are still much lower than before the pandemic,” said Krishnan Sitaraman, senior director, CRISIL
Among various asset classes, the home loan segment will be relatively better off. The rating agency expects delinquencies in home loans to rise 30-50 bps for salaried professionals and 150 bps for self-employed/affordable housing segments.
“The restructuring scheme for MSME borrowers and personal loans announced by the RBI may now limit the rise in NPAs in these segments. Nevertheless, NBFCs
are expected to be prudent in offering restructuring selectively to deserving accounts and not in a blanket manner,” the rating agency said.
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