ICRA Report: NBFC retail’s AUM to grow at 8-10% in FY 2023

The latest ICRA ratings report has stated that the asset under management (AUM) for NBFCs is projected to grow at the rate of 5-7 % in fiscal year 22, which is expected to rise to 8-10% in the fiscal 23.

The report has further stated that there will be an increase in the AUM of Housing finance companies, which is expected to rise to 8-10 % this year and will increase to around 9-11 % in the next year.

Manushree saggar, the vice president of the agency, said that personal credit, microfinance, and gold loans are likely to be the key factors that will lead to this sector’s growth. The other traditional segment in this sector, such as vehicle financing and business credit, is still struggling because of supply restrictions and concerns regarding asset quality.