The proposed asset classification norms and standard asset provisioning norms of the Reserve Bank of India are expected to impact the profitability of the non-banking financial companies ( NBFCs). Shriram Transport Finance Company (STFC) Managing Director and CEO Umesh Revankar said, “Our customers are primarily those who don’t get finance from banks. Therefore bringing them at par with bank customers, is not very good for us.” The central bank has suggested asset classification norms for non-performing assets to come down to 120 days from April 1, 2014 and to 90 days from financial year 2015-16. At present, NBFCs can classify loans as bad assets after 180 days.

Source - http://www.business-standard.com