Non-Banking Financial Companies (NBFCs) are expecting higher credit loss as well as an increase in provision coverage rates, mainly due to the impact of the COVID-19 pandemic, according to a study.
The study by EY is based on an analysis of the financial statements of 42 NBFCs for the year ended March 31, 2020. The companies have reported an ‘increase in expected credit loss allowance by 33% and an overall increase in provision coverage rate by 26% as at March 31, 2020 compared to the year ended March 31, 2019.’
