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Covid-19 to affect sale of loan portfolios for couple of quarters, says Icra

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Mumbai: India’s securitisation market is expected to face hurdles for the next one-two quarters owing to disruptions caused by the covid-19 pandemic, rating agency Icra said in a statement.

In FY20, non-banking financial institutions (NBFCs) and housing finance companies (HFCs) raised around ₹1.97 trillion, similar to the securitisation volumes seen in FY19.

However, due to the ongoing nationwide lockdown that has severely impacted the income generation of a large number of borrowers, the NBFCs are likely to witness a spike in delinquencies across all asset classes, especially loans disbursed by micro finance institutions (MFIs), the rating agency said.

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