Synopsis
The report noted an increase in Expected Credit Loss (ECL) allowance by 33% and an overall increase in provision coverage rate by 26% as at 31 March 2020 compared to the year ended 31 March 2019. The EY Study, , ‘Expected credit loss analysis for non-banking financial companies’ also shows that companies reported a COVID-19 impact comprising 19% of the ECL allowance as at 31 March 2020.
Agencies
EY research team performed a review of the standalone financial statements for the year ended 31 March 2020, in comparison to year ended 31 March 2019 of 42 companies.
Mumbai: Some of the top non banking finance companies and housing finance companies have seen a jump in the way they provision for some of the future uncertainties due to Covid pandemic, an EY report said.