NBFCs Q3 Earnings Preview - Business Growth Gaining Traction; Provisioning To Stay Elevated: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Disbursement momentum held up well in Q3 FY22 even as the economy grappled with fears of a third Covid-19 wave in the last two weeks of the quarter. We expect most of the affordable housing and vehicle financiers to report a decent improvement in disbursement volumes in Q3 FY22 sequentially. Despite this, assets under management growth is likely to be muted for short-duration products such as vehicle loans as collections continued to improve in Q3 FY22. For vehicle financiers, or micro finance institutions, we estimate collection efficiency in the 95-100% range. Collection efficiency levels seem to suggest that asset quality even in the restructured portfolios (wherever repayments resumed) has held up well until Q3 FY22. Most companies appeared to suggest that they might build up management overlay provisions in Q3 FY22 (in light of Omicron-driven third pandemic wave) and that the write-offs/ repossession losses were rather rangebound during the quarter..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

NBFCs Q3 Earnings Preview - Business Growth Gaining Traction; Provisioning To Stay Elevated: Motilal Oswal

NBFCs Q3 Earnings Preview - Business Growth Gaining Traction; Provisioning To Stay Elevated: Motilal Oswal

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