Negative impactCorporate Action
NBFCs’ low NPA numbers may hide bigger loan losses, investors should track write-offs: Deepak Shenoy
CNBC-TV18 2 hrs ago·29 Sept 2026, 10:58 am
Non-banking financial companies (NBFCs) often report low levels of non-performing assets (NPAs), but this figure can be misleading. A key reason is the use of technical write-offs, where a lender removes a bad loan from its books without receiving full payment. While this improves the reported asset quality, it does not mean the money is recovered.
For investors, this distinction is critical. A low NPA count might suggest a company is healthy, but if it is relying on write-offs to clean its balance sheet, the actual financial health could be worse. Investors should look beyond the headline NPA numbers to understand the underlying risk.
Moving forward, the focus should be on the pace of fresh slippages and the quality of new loan growth. If an NBFC continues to rely on write-offs rather than improving its collection efficiency, it could signal deeper problems. Tracking these metrics will help investors assess the true strength of the lender.
Key takeaways
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
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