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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

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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