NBFCs trying to anticipate stressful situations with hazards growing every day: Kunal Kathpal, CRO, Hinduja Leyland Finance

Kunal Kathpal, Chief Risk Officer, Hinduja Leyland Finance Ltd

There have been two enormous hurdles if we divide the NBFC period into its pre- and postcovid eras. The portfolio that previously had cash flow was quantifiable, the client base that was there did not move, and their commercial opportunities were steady. Now that we live in the post-covid era, both of these things have changed, stated Kunal Kathpal, Chief Risk Officer, Hinduja Leyland Finance Ltd.

During the pandemic, we frequently observed people returning to their homes. More than 75 per cent of the clients were brand-new. Many changes in the government have been made. In that terrifying time of COVID-19, people were unable to make money and were not even aware of how to manage the COVID-19 crisis.

The NBFC industry was impacted during the COVID-19 times, as with all other sectors. Some individuals received a six-month advance while the moratorium stage was in effect. Restructuring participants received promotions to higher positions. The portfolio that used to run in a seamless manner suddenly saw a break-off. The efficiency of the collecting process and the steady stream of incoming money both declined in the early stages before steadily improving. However, when the country was struck by the second wave of COVID-19, it once more went down and witnessed the distribution.

He said, “The NBFC industry was confronted with three problems during the pandemic. The first was that customers’ cash flow was being affected, the second that collection efficiency was fluctuating, and the third that no new disbursements were being made. Although we try to anticipate stressful situations, the hazards are growing every day. Hopefully, the government will be able to address this.”

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