Loans of NBFC sector up 16.3% end September 2018: RBI Financial Stability Report

GNPAs of NBFCs increased to 6.1% in September 2018 from 5.8% in March 2018

As per the latest financial stability report of the RBI, the aggregate balance sheet size of the NBFC sector increased to Rs 26 trillion in September 2018 from Rs 22.2 trillion in September 2017 expanding by 17.2%. There was 5.8% increase in share capital of NBFCs in September 2018 whereas borrowings grew by 17.2%. Loans and advances of the NBFC sector increased by 16.3% and investments increased by 14.1% end September 2018 over September 2017.

Net profit increased by 16.2% (annualised) during the half year ended September 2018 as compared to 22.9% during the year ended March 2018. RoA for the half year ended September 2018 was 1.8% (annualised) as compared to 1.7% during March 2018.

GNPAs of the NBFC sector as a percentage of total advances increased to 6.1% in September 2018 from 5.8% in March 2018.

As per extant guidelines, NBFCs are required to maintain a minimum capital level consisting of Tier-I and Tier-II capital, of not less than 15% of their aggregate risk-weighted assets. NBFCs' CRAR decreased to 21.0% in September 2018 from 22.8% in March 2018.

As of 30 September 2018, there were 10,190 non-banking financial companies (NBFCs) registered with the Reserve Bank, of which 108 were deposit accepting (NBFCs-D). There were 276 systemically important non-deposit accepting NBFCs (NBFCs-ND-SI). All NBFC-D and NBFCs-ND-SI are subjected to prudential regulations such as capital adequacy requirements and provisioning norms along with reporting requirements.

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