New Delhi, March 30 -- Non-banking financial companies (NBFCs) in India may face rising credit risks in select loan segments due to a potential fuel supply shock linked to the ongoing Iran conflict, according to a report by Nomura.
The report, which assesses the impact of a prolonged conflict scenario lasting up to a month, flagged business, micro, small and medium enterprises (MSME) and vehicle loans as the most vulnerable categories, citing their direct exposure to fuel costs and economic activity, ANI reported.
Pressure on MSME and Business Loans
Nomura noted that NBFCs are likely to adopt a cautious stance towards lending in business and MSME segments, where the impact of rising fuel costs is expected to be immediate. These segmen...