NEW DELHI, Jan. 22 -- After a gruelling two quarters due to the pandemic, India's non-banking financial companies (NBFC) may find some succour in the December quarter because of proactive provisioning and recovery in collections.
However, investors should not let their guard down just yet.
Two big trends in the past three months have given confidence to investors on NBFCs.
Improving collection efficiencies and an improvement in loan disbursements for most lenders have brightened the outlook.
NBFCs have been able to get back money from borrowers more easily than before, with collection efficiencies showing an increase every month. For most lenders, collections are just a hair's breadth away from pre-covid lev- els. This is the outcome of...