Nbfc Deposits Decline 14.8% To Rs 8338 Crore

Public deposits held by non-banking finance companies (NBFCs) fell by 14.8 per cent (Rs 1,447 crore) during 1999-2000, to Rs 8,338 crore. The decline was observed in the deposits with less than or equal to five-year maturities. Public deposits in this group declined by 31.16 per cent (Rs 2996.57 crore) to Rs 6620.32 crore.

The quantum of the public deposits in the maturity bucket exceeding five years went up by 922.61 per cent to Rs 1,718 crore in 1999-2000, from Rs 168 crore in 1998-99. However, this increase was mainly due to the mobilisation of Rs 1,668 crore through non-convertible debentures by a West Bengal-based, government-owned NBFC.

 

Interest rate-wise, quantum and percentage of deposits moved up significantly in the interest rate range of 14 per cent and below than that. Public deposits in this category went up 74.17 per cent to Rs 4,313.54 crore in 1999-2000. Deposits, as a percentage of total deposits, increased from 25.31 per cent to 51.73 per cent.

Amount of public deposits with more than 14 per cent interest rate fell by 44.93 per cent to Rs 4,024.41 crore. Deposits in this category as a proportion of total deposits declined to 48.27 per cent in 1999-2000 from 74.69 per cent in 1998-99.

Net profit of the NBFC sector, helped by a huge growth in the fee-based income, (82.6 per cent to Rs 471 crore) increased by 14.2 per cent from Rs 120 crore in 1998-99 to Rs 137 crore in 1999-2000. The fund-based income of the sector dipped by 3.8 per cent to Rs 6,299 crore. The total income fell 0.6 per cent to Rs 6,770 crore, while expenditure also dropped 0.8 per cent to Rs 6,416 crore.