Competition between banks, NBFCS in retail credit to rise: ICRA
Competitive pressures on retail-focussed NBFCs are to intensify while banks are increasing focus on retail segments due the pressures on corporate credit, according to a report released on Thursday by credit rating agency ICRA.
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Kolkata: Competitive pressures on retail-focussed NBFCs are to intensify while banks are increasing focus on retail segments due the pressures on corporate credit, according to a report released on Thursday by credit rating agency ICRA.
"Retail credit from non-banking finance companies (NBFCs) is expected to grow by 19-22 percent in the 2016-17 fiscal starting from April this year," it said.
According to the agency, retail credit growth is likely to be picked up by improvement in commercial vehicle segments, better growth for gold loans and microfinance sector along with unsecured loans and loans against property.
Retail credit from NBFCs stood at Rs.4.7 trillion at the end of calendar year 2015 with a year-on-year growth of nearly 19 percent.
The agency estimates NBFCs will need to mobilize Rs.2.2-2.4 trillion funding in 2016-17, out of which bond mobilisation could be to the extent of Rs.600-700 billion.
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