Media reports have stated that NBFCs catering to small borrowers are likely to see a jump in gross NPAs and provisioning as they migrate to the 90 days norm by 2018, while restriction on accessing public deposits will narrow margins and will adversely impact the profitability of the NBFCs. 30.
Several representations that we have received are with regard to the issue of aligning the asset classification norms with banks; if you all will recall, this has been the focus of the Reserve Bank for several years and has also been the recommendation of several Committees.