Post-2015 slump to blame for NBFC crisis, banks' low credit growth: Experts

Outstanding credit growth declined to 13.2% between FY15 and FY18 from 18.2% between FY08 and FY15

Ten years after the collapse of Lehman Brothers and the onslaught of a global economic recession, India’s financial institutions are facing their own “self-induced” crisis. Owing to various factors, bank credit growth has slumped since 2015, as a result of which non-banking financial companies (NBFCs) began to rely heavily on debt issuance for loan-book as well as physical growth, said analysts. 

Between FY08 and FY15, overall bank credit grew at a CAGR of 18.2 per cent, but since then, outstanding credit growth has declined to 13.2 per cent between FY15 and FY18. 

Overall credit has grown manifold from about Rs