NBFCs saw improvement in profitability in FY18 and H1FY19: RBI report

Buoyed by strong credit growth, the balance sheets of the Non-Banking Financial Companies (NBFCs) have seen an expansion in 2017-18 (FY18) and in the first half of 2018 (H1FY19).

“The financial performance of the NBFCs, including profitability, asset quality and capital adequacy, improved during 2017-18 as they weathered the transient effects of demonetisation and goods and services (GST) implementation”, Reserve Bank of India (RBI) said in a report on trend and progress of banking in India.

Moreover, backed by an increase in fund-based income, the NBFCs saw an improvement in their profitability in FY18 and in the H1 of FY 19.