The overall non performing loans of NBFC sector is likely to increase to 7.8 per cent in financial year 2016-17 from an estimated 6.7 per cent in the current fiscal, says a report.

“The overall gross NPA ratio of NBFCs across asset classes is likely to rise to 7.8 per cent by March 2017, from 6 per cent at end-September 2015 and an estimated 6.7 per cent in FY16,” India Ratings and Research said in a report. Of the 7.8 per cent gross NPL, 1.5-1.7 per cent of the increase will be due to the shift to 120-day NPL recognition norm in financial year 2016-17 from 150-days at financial year 2015-16. The norm says NBFCs will have to classify an asset as NPA if it stays overdue for 120 days.

http://economictimes.indiatimes.com/industry/banking/finance/banking/nbfc-sectors-gross-npl-ratio-to-rise-to-7-3-by-march-2017/articleshow/50888093.cms

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