Loan delinquencies of non-banking finance companies (NBFCs) could dart up 50-250 basis points (bps) this fiscal, depending on the segment of operation, because of vulnerability in borrower cash flows, according to credit rating agency Crisil.

The agency said this is a base-case estimate without factoring in loan restructuring and the Covid-19 affliction curve.

As per this estimate, as of March-end 2021, the projected delinquency in the home loan segment is 1.7-1.9 per cent (against estimated 1.1-1.3 per cent as at March-end 2020); vehicle finance, including construction equipment (8.0-8.5 per cent against 6.0-6.5 per cent); loans against property (6.0-6.5 per cent against 3.5-4.0 per cent); unsecured SME loans (6.0-6.5 per cent against 4.0-4.5 per cent); and unsecured loans – consumer durable and personal loans (4.0-4.5 per cent against 2.0-2.5 per cent).

Covid-19 afflictions

Crisil observed that the rapid increase in Covid-19 afflictions and intermittent lockdowns will increase asset quality challenges of

Read More

I never thought I’d hear a big oil CEO come right out and say that oil is a terrible investment — but that’s practically what BP‘s (NYSE: BP) Bernard Looney said in the energy supermajor’s second-quarter earnings report on Aug 4.

He made other big announcements at the time, too, revealing that BP was cutting its dividend in half and that the company had a net loss of $16.8 billion in the quarter. Although those points were the ones that made the headlines — even here at the Fool — the company’s shift away from oil will likely have the biggest impact on its shareholders over the long term.

Here’s what investors need to know from the earnings report.

A man holds an oil droplet icon in one hand and a stack of paper currency in another.

Image source: Getty Images.

By the numbers

Metric Q2 2020 Q1 2020 Q2 2019 Change (YOY*)
Revenue $31.7 billion $59.7 billion $72.7 billion (56.4%)
Net Income ($16.8 billion) ($4.4 billion)
Read More