Lower fund costs to lift NBFC margins, MSME stress stays
Published on: Oct. 14, 2025, 5:57 a.m. | Source: The Economic Times
NBFCs anticipate a boost from lower funding costs in Q2, potentially improving net interest margins. However, purchase deferrals due to GST cuts and ongoing asset quality concerns, particularly in MSME and microfinance portfolios, could temper earnings. Vehicle financiers face growth challenges, while gold loan providers are poised for expansion.
