42% NBFCs expect over 15% growth in AUM in FY22
Within the non-bank finance sector, segments like MFIs, SME-focused NBFCs and affordable housing finance would continue to record much higher growth than the overall industry averages, supported by good demand and lower base.
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Around 42 per cent of non-banking financial companies (NBFCs) expect a growth of more than 15 per cent in their asset under management (AUM) in fiscal 2021-22, says an Icra Ratings survey.
The findings are based on a survey of 65 non-banks, constituting around 60 per cent of the industry AUM. The agency conducted the survey to understand the impact of the second wave of Covid-19 on these entities and their expectations going forward. It said NBFCs growth expectations have moderated vis-a-vis the expectations six months earlier. This follows the possible impact of Covid 2.0 on business in Q1 FY2022.
"While 42 per cent of the issuers (NBFCs by number) are expecting a more than 15 per cent growth in AUM in FY2022, the proportion based on AUM weights is much lower at eight per cent, indicating that larger players in the segment expect a relatively moderate growth in FY2022," the agency's Vice President (Financial Sector Ratings) Manushree Saggar said. With most of the lenders (74 per cent in AUM terms) indicating an up to 10 per cent AUM growth, the agency expects the growth for the overall industry to be about seven-nine per cent for FY2022.
