MUMBAI : Disruptions caused by the covid-19 pandemic will lead to further worsening of asset quality of non-bank financiers, a segment that is more exposed to the downturn than banks, Moody’s Investors Service said on Tuesday. “Asset quality at non-banking financial companies (NBFCs) will significantly deteriorate as economic disruptions from the coronavirus outbreak deepen an economic slowdown that has been underway in the past few years," Moody’s said in a report.
The asset quality of these lenders has weakened in recent years amid worsening economic conditions, which will be exacerbated by the economic shock from the coronavirus outbreak, it said.