Nuvama Institutional Equities released an October report on 15 October that a 250‑basis‑point hike in the RBI repo rate during FY22‑24 has not widened non‑banking financial company (NBFC) asset‑quality problems.
Gross non‑performing assets fell from 5.7 per cent in March 2022 to 4.6 per cent in March 2023, a decline driven by robust credit growth, higher write‑offs, tighter underwriting and stronger provision buffers, the report added.
The West‑Asia conflict and global spill‑overs have so far been confined to a handful of low‑ticket unsecured private loan, business loan, micro‑LAP and CV/CE segments, the report said, underscoring that macro‑shocks would need to be prolonged to spread stress.
El Niño‑related risks are also on the radar, with Nuvama warning that a winter‑crop downturn could surface with a lag, urging continuous monitoring.
Capital buffers, liquidity and provision reserves should cushion NBFCs, the report said, and margins will vary with the speed of asset‑liability repricing, it added.
RBI is slated to meet on 29 November to decide on the next policy step; market observers expect the central bank to keep rates steady until a clear macro‑economic signal emerges.