Clipped from: https://www.business-standard.com/finance/news/how-nbfcs-are-back-in-the-reckoning-124062700434_1.html
Sector has overcome the after-effects of the pandemic; its credit crossed the Rs 50 trn mark in FY25
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Raghu Mohan New Delhi
1 min read Last Updated : Jun 27 2024 | 3:08 PM IST
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Non-banking financial companies’ (NBFCs’) credit is set to cross the Rs 50 trillion mark in FY25. The sector has overcome the after-effects of the pandemic, according to a report by ICRA-ASSOCHAM. While growth remained lower than its historical highs, it was healthy considering the expanded base. NBFCs, excluding the housing finance companies and NBFC-Infra, shall continue to expand at a higher pace driven by the retail assets growth. The key, however, is access to funding for meeting growth projections, even as the target segments of NBFCs remain largely credit-underserved. The opportunities for NBFCs have undergone a dramatic change. Sizeable pent-up credit demand after the pandemic resulted in a sharp credit expansion, especially in the retail segments. At the structural level, during 2010-2020, NBFCs set their sights on asset-backed lending and steadily built their franchises. Over time, improvement in credit bureau data and a better understanding of borrowers’ cash flows helped them fine-tune their underwriting processes.
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Topics : NBFCs
First Published: Jun 27 2024 | 3:08 PM IST
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