NBFC loans report strong 37.6% growth, banks still on single-digit

Non-bank firms' sanctions are, however, still half of pre-pandemic level

Reflecting a gradual pick-up in activity, finance companies reported a strong 37.6 per cent growth in sanctions in categories like vehicle loans, housing loans and loan against shares (LAS), among others, at Rs 1.24 trillion in Q1 (first quarter) of FY22 compared to Rs 90,615 crore in Q1 of FY21.

The scale of sanctions was still way below the Q1 numbers of FY20, which stood at Rs 2.38 trillion, according to data by the Finance Industry Development Council (FIDC).

This implies that the economy is trudging back to a laboured recovery, but is far away from the pre-pandemic normalcy, a concern that