- The main reason behind it was stricter standards for income recognition, asset classification, and disposal that came into force in October.
- Apart from this, NBFC depreciation remained high and marginally high compared to last year, while HFC depreciation was modest.
- According to the credit rating agency, the bad loans for NBFCs decreased significantly during the quarter compared to Housing Finance Loans
- Bad loans from NBFC decreased to 4.4% in March 2022 from 5.7% in December 2021.
- In the case of mortgages, the bad loans slowed, in line with expectations, to 3.3% compared to 3.6% in December 2021.
- In addition, the restructured standard book for NBFC is estimated to have decreased to 2.7-3% in March 2022 from the peak of 4.5% in September 2021.
- While in the case of HFC, it got decreased to 1.4-1.6% from 2.2% in December 2021.
Question:
Q.1 According to ICRA report the bad loans for NBFC decreased to ______ in March 2022?a. 4.6%
b. 4.4%
c. 3.2%
d. 4.5%
