NBFCs’ AUM expected to start growing from next FY: Crisil

Mumbai, Dec 11 : After a tough run, the assets under management (AUM) of non-banking financial companies (NBFCs) are expected to grow again from next fiscal, Crisil Ratings said on Friday.
Accordingly, the de-growth in the current fiscal – AUM of NBFCs is set to grow again – although at a relatively subdued 5-6 per cent.
The industry has witnessed a stellar growth of 18 per cent per annum in AUM between fiscals 2014 and 2018.
However, the pace decelerated to a stutter since the credit event of September 2018 due to funding access challenges, followed by asset quality worries due to the Covid-19 pandemic this fiscal.
Nevertheless, recent months have seen some green shoots.
“Despite an estimated GDP growth of 10 per cent next fiscal, overall NBFC sector growth is likely to be slower because access to funding remains a challenge due to concerns about the impact of the pandemic on asset quality,” Crisil Ratings President Gurpreet Chhatwal said in a statement.