Banks credit to non-bank financial companies (NBFCs) surged in July

By Pradeep Yuvaraj | August 10, 2011

A recent press report said that Indian banks’ credit to non-bank financial companies (NBFCs) has increased extremely in the month of July as lenders showed more preference to less-regulated sector as loan demand from corporate has slowed down.
Reports said that the credit growth to NBFCs stood at 55.6 percent on a year-on-year basis in July, which is significantly higher than 10.9 percent in the corresponding period last year.

According to the report a top official of a state-run bank said that credit growth is somewhat muted in banks, and the NBFCs are in need of more funds and so due to the muted credit growth the banks are willing to offer loans to NBFCs.
Reports said that the advances to the commercial real estate sector have increased by 17.1 percent on year in July, jumping from 2.4 percent in the previous year and in June, the loans to sector has increased 23.2 percent.
The NBFCs in India offer small loans to consumers and businesses but do not have the same capital requirements and sectoral exposure limits as banks.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Articles Glossary Tags: , ,

About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

Leave a Reply

Your email address will not be published.