In our view, the most vulnerable segments are two-wheeler, new-to-credit and self-employed customers. Salaried borrowers with good CIBIL scores may also default given the uncertainty around job losses or salary cuts. BAF’s collection infrastructure will have to be ramped up significantly to address the surge in bounce rates. Our channel checks suggest that while it is possible to scale up collection infrastructure at the field agency level, this will come at a cost and may not be as efficient because the agents will have to cater to other financiers too.
CIBIL score 750+ 65%
New to credit 35%
