NBFCs growth expected to revive in FY2022: ICRA

New Delhi, Jan 6 : AUM growth of non-banking companies, including NBFCs and HFCs, are expected to revive in FY22 to about 7-9 per cent vis-a-vis a flattish performance in the current fiscal, ICRA Ratings said on Wednesday.
The segment’s AUM had registered a growth at a CAGR of 16 per cent in the period from March 2016 to March 2020.
Accordingly, the ratings agency conducted a survey across non-banks, involving about 60 entities, which together account for over 50 per cent of the sectoral AUM and about 23 investors.
The survey findings showed more HFCs expect a higher growth rate vis a vis NBFCs and, smaller and mid-sized entities expect higher growth rate vis-a-vis their larger peers.
However, investors have a relatively muted growth outlook vis-a-vis the issuers.
According to A.M. Karthik, Vice President, Sector-Head Financial Sector Ratings, ICRA: “Growth in FY22 is envisaged to be driven by the improvement in demand from all the key target segments vis a vis current fiscal, which was impacted by the Covid-19 lockdown.