Economic survey on NBFCs

31 Jan 2022 , 02:33 PM

 
 
Finance Minister Nirmala Sitharaman has tabled the country’s Economic Survey 2021-22 today. Here is what the survey said about the Non-Banking Finance Companies (NBFCs) sector.

• Credit growth of NBFCs remained sluggish in 2021-22 so far
• The total credit of NBFC sector increased marginally from Rs 27.53 lakh crore in March 2021 to Rs 28.03 lakh crore in September 2021
• Industry remained the largest recipient of credit extended by the NBFC sector, followed by retail loans and services
• Share of large industry in the total credit to industry by NBFC sector increased from ~82% at end March 2019 to 90% at end September 2021
• Total assets of NBFCs increased from Rs 36.37 lakh crore in September 2020 to Rs 42.05 lakh crore in September 2021, a YoY growth of 15.61%
• Banks’ exposure to NBFCs increased (in the form of bank lending and investment in Non-Convertible Debenture (NCDs) and Commercial Paper (CPs)) from Rs 8.44 lakh crore in September 2020 to Rs 9.16 lakh crore in September 2021, recording YoY growth of 8.5%
• External liabilities of NBFCs in the form of secured and unsecured borrowings and public deposits increased by 7.95% (on a YoY basis) in September 2021
• Borrowings from other financial institutions marginally increased from Rs 58,650 crore in March 2021 to Rs 59,525 crore in September 2021 (4.34 per cent YoY growth)
• Market borrowings – NCDs and CPs – increased from Rs 10.56 lakh crore in September 2020 to Rs 11.41 lakh crore in September 2021 (8.09% YoY growth)
• GNPA ratio of NBFCs was higher at 6.55% at end-September 2021, versus 6.06% at end-March 2021
• Net NPA ratio remained at 2.93% at end-September 2021 same as in March 2021
• As against the regulatory requirement of 15%, CRAR for the NBFC sector stood at 26.64% at end-September 2021