NBFCs' financial profile improved in FY18: RBI's financial stability report

NBFCs have to maintain a minimum in tiers-I and II capital of not less than 15 per cent of aggregate risk-weighted assets

The financial profile of non-banking finance companies (NBFCs), expanding business activity at a fast clip as a lending group, showed improvement in 2017-18 in capital adequacy, profitability, and asset quality. According to the Reserve Bank's Financial Stability Report (FSR), their gross non-performing assets (GNPAs) as a percentage of gross advances declined to 5.8 per cent in FY18, from 6.1 per cent in FY17. Return on assets rose to 1.9 per cent, from 1.6 per cent the previous year. The capital adequacy ratio (tiers I and II) improved to 22.9 per cent, from 22 per cent.

NBFCs have to maintain a minimum