Rate hike may hurt select NBFC segments, but broad asset stress unlikely: Report

Nuvama Institutional Equities suggests that an RBI rate hike may not broadly impact NBFC asset quality. The report indicates that past rate increases did not lead to widespread deterioration. Current risks, including the West Asia conflict, appear limited to specific NBFC segments. Healthy capital buffers and liquidity may support overall asset quality for most NBFCs. Any future deterioration is expected to be specific, contingent on external shocks.