Story thread · 3 reports / 3 sources

NBFCs outpace banks as cards lose some credit

economictimes.indiatimes.com · 1dShare

Mumbai: Non-banking finance companies (NBFCs) led in retail loan growth in June, outpacing even the robust expansion in bank credit, showed latest data from the Reserve Bank of India (RBI).Retail loan growth by NBFCs at more than 20% year-on-year surpassed the 16% increase recorded by banks in June, lifted by strong demand from segments such as loan against jewellery (69%) and consumer durables (47%). Bank credit to this sector, however, got impacted by the deceleration in outstanding credit card growth to 2% from 7% a year ago, the data showed. The sluggish growth is also because banks have almost vacated the consumer durable finance space.Overall, non-food credit growth for NBFCs was stronger at 18% year-on-year in June, compared to 14% for banks in the same period.Aastha Gudwani, economist at Barclays, said NBFC credit growth is highly concentrated, with retail loans comprising the largest portfolio share and reflecting the strongest growth among the major sectors.133132557"The comb

First report: Why NBFC gold loans are growing nearly 70% despite tighter RBI regulations — timesofindia.indiatimes.com, 3d