Potential RBI rate hike unlikely to cause broad-based asset-quality stress at non-bank lenders

The Economic Times, citing Nuvama Institutional Equities, reports that a potential RBI rate hike is unlikely to cause broad-based asset-quality stress among non-banking financial companies. Nuvama says their asset quality improved during the FY22–24 tightening cycle despite a 250-basis-point rise in the repo rate. It says stress could spread if rate hikes become prolonged and are accompanied by a major external or macroeconomic shock.