RBI urges NBFCs to diversify funding

Mumbai: The Reserve Bank on Wednesday asked non-bank finance companies to broad-base their fundraising to limit reliance on banks as it called for strengthening balance sheets and guarding against frauds and data breaches.

According to the report ‘Trend and Progress of Banking in India 2022-23’ released by the RBI, the Indian banking system and NBFCs remain sound and resilient, backed by high capital ratios, strengthening asset quality and robust earnings growth. The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors. Deposit growth also picked up, although it trailed credit growth, it said.