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NBFC funding to commercial sector plunges 20% in FY19: RBI annual report

Commercial credit flows from NBFCs stood at Rs 9.34 trillion in FY19, down from a high of Rs 11.60 trillion in the previous financial year

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
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The ongoing repair of banks’ balance sheets and rebuilding of capital buffers have brought about a plateauing of stressed assets and a rekindling of credit flows

Abhijit Lele Mumbai
Gains in restoring financial stability may face rough weather due to credit and liquidity stress in non-banking financial companies (NBFCs) in India, according to the Annual Report of the Reserve Bank of India (RBI).

The aggregate demand is slowing in a broad-based manner.

These concerns are, however, being addressed by the RBI, according to the Annual Report for 2018-19, released on Thursday.

India’s macroeconomic stability provided a silver lining. But it is unclear whether this stability mitigated a deeper loss of activity or it reflected the symptoms of the slowdown itself. This dilemma becomes all the more acute when juxtaposed with issues relating

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First Published: Aug 30 2019 | 1:37 AM IST

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