Sumary of Up to 180 bps higher NPA likely for NBFCs, says ICRA:
- A rise in non-performing assets is likely for non-banking finance companies following the revised bad loan recognition and upgradation norms, rating company said.
- The rise in NPAs for housing finance companies (HFCs) could be by about 60-80 basis points over the same period.
- The Reserve Bank of India through a note on November 12 provided clarification on income recognition, asset classification and provisioning norms for banks, NBFCs and all-India financial institutions.
- The key points include classification of special mention account (SMA) and NPA on a day-end position basis and upgrade from an NPA to standard category only after clearance of all outstanding overdues.