INSUBCONTINENT EXCLUSIVE:
Housing Finance Companies (HFCs) will face pressures on both growth and fundings, India Ratings, a Fitch group company, said on Monday.India
Ratings and Research (Ind-Ra) has revised its sector outlook on NBFCs to "negative" from "stable"
The agency has maintained its negative outlook on large ticket HFCs.Ind-Ra expects structured finance (SF) rated transactions to remain
stable in the second half of FY20, on account of cherry-picked loans, significant amortisation, minimum utilisation of credit enhancement
and the consistently robust performance of underlying retail and commercial loan assets when compared to overall industry trends, it said.(
How India's shadow banking crisis sent auto sector into tailspin)Ind-Ra has cut its growth forecast for NBFCs for FY20 to 10-12 per cent
from 15 per cent in view of the funding challenges and slowdown in economic activity, which is evident from the fall in auto sales, slowdown
in rural infra activity and small and medium enterprises (SME) challenges.The agency expects the overall profitability to moderate across
the industry, as the rise in funding cost and falling lending opportunities would lead to increased margin pressure.The ability to partially
pass on the increase in funding cost to retail borrowers also remains constrained due to subdued demand, it added.Get Breaking news, live
coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
