Deepak Shenoy warns NBFC NPA figures may hide loan losses
In short
Deepak Shenoy said NBFCs may be showing lower bad-loan numbers than they really have. He said technical write-offs can push bad loans out of reported NPAs and make asset quality look better.
This matters for investors tracking lender health. The report did not name any NBFC, time period, or amount.
What the reporting says
Deepak Shenoy said NBFCs’ low reported NPA numbers may hide bigger loan losses, according to a CNBC TV18 Market summary. The Capitalmind CEO pointed to technical write-offs that can remove bad loans from reported NPAs and make asset quality look better than it really is. The immediate implication is that investors may need to watch write-offs more closely, but no specific lender, period or amount was stated.
Why it matters
Deepak Shenoy warned that NBFC reported NPA figures may understate stress because technical write-offs can remove bad loans from the headline numbers. The comment, reported by CNBC TV18 Market, matters for investors comparing asset quality across lenders. The source did not name any specific NBFC, disclose a period, or quantify the possible gap between reported NPAs and actual loan losses.