Profitability for NBFCs may remain stable despite squeeze in margin

“Last fiscal, many NBFCs had released their provisioning buffers partially, which had reduced their credit costs. There is still a reasonable amount of cushion available — 0.5% to 2% of assets — as contingency provisioning. That means incremental provisioning would be lower. Consequently, profitability is likely to be nearly stable this fiscal compared with last,” said Ajit Velonie, director with the rating company.

from Banking/Finance-Industry-Economic Times https://ift.tt/T2diNKr