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NBFC funding to commercial sector fell 20% in FY19 after IL&FS crisis: RBI

Credit flow from NBFCs to the commercial credit stood at Rs 9.34 trillion as of FY19, down from a high Rs 11.60 trillion as of FY18, the RBI says in its annual report for 2019

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Lower issuances of debt and equity by non-financial entities and lower investments by LIC in corporate debt, infrastructure and the social sector have also resulted in lower credit flow

Press Trust of India

3 min read Last Updated : Aug 29 2019 | 10:00 PM IST

The Reserve Bank has blamed the fall of the IL&FS group and the resultant negativism on the sector for the near 20 percent plunge in the flow of credit to the commercial sector from non-banking lenders in FY19.

Credit flow from NBFCs to the commercial credit stood at Rs 9.34 trillion as of FY19, down from a high Rs 11.60 trillion as of FY18, the RBI says in its annual report for 2019, released Thursday.

"The decline in flows from non-banking entities was mainly on account of the lower flows from non-deposit taking systemically important NBFCs (net of bank credit

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