Growth in credit to the non-banking financial company (NBFC) sector plummeted to 7.8 per cent year-on-year (Y-o-Y) in the fortnight ending November 29, 2024, compared to a 19 per cent increase during the same period of 2023. This slowdown contributed to a decline in growth of credit to the services sector, which fell to 14.4 per cent from 22.2 per cent Y-o-Y, according to sectoral deployment data released by the Reserve Bank of India (RBI).
The slowdown in credit growth to the NBFC sector can largely be attributed to the RBI's decision in November last year to increase risk weights on bank funding to NBFCs. This move prompted the shadow banks to diversify their funding sources. Now, NBFCs have increasingly turned to the domestic capital market, raising funds through bonds, as well as the overseas market, tapping into dollar bonds and syndicated loans.
Esta historia es de la edición January 02, 2025 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición January 02, 2025 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Laxmi Dental gains over 28% on debut
The stock of Laxmi Dental posted a value jump of nearly 30 per cent during its trading debut on Monday.
Hedge fund managers keep nearly half of profit as fees
Hedge funds have long been regarded as notoriously expensive. New research reveals just how costly they truly are for their clients.
NCLT orders liquidation of Go First
The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of low-cost carrier Go First on the request of its Committee of Creditors (CoC), thus bringing an end to the 20-month-long insolvency proceedings.
The automotive frontier
India needs investment in the EV segment
Anatomy of a regulator
Regulatory bodies are important institutions in a market economy, requiring careful handling
Joining the dots on infrastructure
Pratap Padode is a financial journalist and publisher of Construction Update, a magazine launched in 1996, followed by Infrastructure Today, Power Today and Project Reporter.
The need of the hour is a 'Dream Budget'
In less than two weeks, the finance minister will present the Union Budget for 2025-26.
Focus on Davos
States must improve ease of doing business
Clarity needed on Rodtep scheme extension for EOU/SEZ/AA exports
We had supplied our manufactured goods to a merchant exporter on payment of 0.1 per cent IGST under the notification 41/2017-IT(Rate) dated 13th October 2017.
'Lodha' brand triggers tussle amid brothers
Abhishek Lodha has approached the Bombay HC seeking to stop Abhinandan from using the name
