Home loans are expected to maintain steady growth of 13-14 per cent. Policy initiatives, such as the re-introduction of the interest subsidy scheme, will provide impetus. Housing finance companies focused on the affordable segment are likely to grow faster at 22-23 per cent.
Growth in vehicle finance is estimated to moderate but remains healthy at 15-16 per cent. While unit sales growth of new vehicles will be lower, the shift to higher-value vehicles and continued focus on used assets should provide an offset and support overall growth, the report said.
On the other hand, the unsecured loans and microfinance segments, accounting for 23 per cent of the overall NBFC loans, are expected to be impacted the most.
According to Krishnan Sitaraman, the chief rating officer at the agency, recent regulatory pronouncements have brought to the fore the criticality of compliance, both in letter and spirit and operational risk management.
Additionally, asset quality metrics have weakened in the past few quarters in some segments. This has necessitated a recalibration of growth strategies, especially in unsecured loans and microfinance.