NBFCs Likely To See Muted Growth In Q1

Lower disbursals, higher slippages cause for concerns

- KSHIPRA PETKAR

EARNINGS OF NON-BANKING financial companies (NBFCs) are likely to be muted for the quarter ended June due to a decline in disbursements and asset quality pressures, analysts said.

"Our outlook remains positive, backed by improving margin trajectory and healthy credit cost environment. The slowdown in growth, however, is a dampener," Prabhudas Lilladher said.

Analysts expect diversified non-bank lenders to perform better compared to vehicle finance and micro-finance players. Growth for housing finance NBFCs is expected to pick up.