BFSI Sector Check – August Bounce Rates Better Than March Average: ICICI Securities

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Unsuccessful auto-debit requests (bounce rate) in terms of value on National Automated Clearing House platform have fallen ~3% to 26.8% as against the average 30% for April-June 2021.

It is better than March 2020/March 2021 average of ~27.5% but still couple of percentage points higher than pre-Covid-19 average of 24-25% suggesting signs of normalisation in bounce rate in coming months.

Similarly, unsuccessful auto-debit requests (bounce rate) in terms of volume have also improved to 33.0% versus April-June 2021 average of 35.5%, 33-34% in March 2020/March 2021 and ~31% average pre-Covid-19.

Market feedback and collection efficiency reported by a few lenders suggest normalisation kicking in with improvement in collection efficiency from mid-June once there was easing of restrictions/lockdowns.

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ICICI Securities BFSI Sector Update.pdf


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