NBFCs' share in India's lending pie fell to 5-year low of 19.8% in H1FY23

The NBFCs share of the country's lending pie declined to five-year low of 19.8 per cent in the first half of FY23

Banks are gaining market share at the expense of non-bank lenders such as housing finance companies, retail lenders, and those giving gold loans.

There has been a steady decline in the market share of non-banking financial companies (NBFCs) in the credit market as banks have stepped up lending.

NBFCs’ share declined to a five-year low of 19.8 per cent in the first half of FY23, down from 20.3 per cent in H1FY22, and an all-time high of 23.1 per cent in H1FY19.

This reverses nearly a decade-long process when NBFCs increased their share in the country’s credit and grew more profitable than banks.

NBFCs’