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Last Updated : Sep 28, 2017 03:00 PM IST | Source: CNBC-TV18

Rural sector should see different picture for rural based NBFCs: M&M Financial

An ICRA report projects that delinquency levels in non banking financial companies (NBFCs) are set to rise. To put it short people will default more from the loans that they have taken from NBFCs.

An ICRA report projects that delinquency levels in non banking financial companies (NBFCs) are set to rise. To put it short people will default more from the loans that they have taken from NBFCs.

The author of the report - Karthik Srinivasan, Group Head-Financial Sector Ratings at ICRA spoke about the report and Ramesh Iyer, VC & MD of Mahindra & Mahindra Financial Services shared his views.

Srinivasan said delinquency numbers have been rising for the last couple of quarters and in certain sub-segments like microfinance and loan against property (LAP), these numbers are likely to increase further.

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M&M Financial's Iyer said as far as the final end consumer is concerned, more or less the vehicle prices have remained stable despite goods and services tax (GST).

He further said that GST has not impacted the end consumer as much as the working cycle of dealer would have been impacted. Therefore, dealer will look for more financing through lenders, he added.

He expects yields to come in from November onwards in the rural economy.

According to him, rural sector should see different picture for rural based NBFCs.

Watch accompanying video for more details.
First Published on Sep 28, 2017 03:00 pm
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