NBFC asset base scales past Rs. 54 lakh cr
Credit demand in NBFC sector expected to grow to Rs30 lakh cr in near future: MoS Finance
image for illustrative purpose
Mumbai: The asset base of non-banking financial companies (NBFCs) has scaled past Rs54 lakh crore as of March 2022, constituting almost a quarter of the balance sheet of the commercial banking sector, Union Minister Bhagwat Krishanrao Karad said on Tuesday.
It can be noted that since the fall of the two major NBFCs -- IL&FS and Dewan Housing Finance Ltd (DHFL) -- the shadow banking industry was in a long crisis. This crisis was more to do with their ability to mop up lendable funds as banks shunned them on one side and the RBI kept on tightening the regulatory noose around them, finally bringing them on par with banks when it comes to bad loan recognition since November 2021.
He said around 11.3 million MSMEs have taken collateral-free loans worth Rs2.32 lakh crore from NBFCs till June 2022. The credit demand in the NBFC sector is expected to grow to almost Rs 30 lakh crore in the next couple of years.
Addressing a CII-organised NBFC summit, the Union Minister of State for Finance said NBFCs have become the major growth driver of the economy by playing a vital role in providing credit to small and medium enterprises. They have helped the MSME sector scale up its operations and create more jobs.
