India’s Leading BFSI and FinTech Companies 2021

25 0.9 4.9 16.7 13 0 2 4 6 8 10 12 14 16 18 FY19 FY20 Return on Equity (RoE) (%) NBFCs-ND-SI NBFCs-D 0 0.5 1 1.5 2 2.5 3 FY19 FY20 Return on Assets (RoA) (%) NBFCs-ND-SI NBFCs-D Although growth in the balance sheet of NBFCs decelerated significantly in FY20, NBFCs continued to be well capitalized with better asset quality as compared with SCBs. The ongoing pandemic has further exacerbated the challenges faced by the sector leading to funding constraints and further deterioration in asset quality. The central bank and the Government have undertaken various liquidity and regulatory measures to boost market confidence and to infuse liquidity in the system, as a result of which, the first half of FY21 witnessed a rebound in loans and advances. Loan moratorium and standstill in asset classification has also brought about an improvement in asset quality. Some NBFCs havemade additional provisioning as per expected credit loss norms and also strengthened capital position by ploughing back dividends. Going forward, the profitability of NBFCs is likely to be subdued amid lower credit demand and risk-averse sentiment. Dun & Bradstreet