Private banks, NBFCs gain at govt banks' expense

Bonds raised by private firms also show a sharp increase

As public sector banks (PSBs) go slow in giving credit to industry, private sector banks and non-banking finance companies (NBFCs) have been quick to lend a helping hand. 

PSBs have seen their market share in loans to the commercial sector erode from 70.9 per cent in 2014-15 to 64 per cent in 2016-17. Private sector banks have gained 680 basis points to reach 33.1 per cent in the same period.

Compared to banks, whose year-on-year (YoY) credit growth rate was 5.1 per cent in 2016-17, NBFCs registered 13 per cent growth. NBFCs have increased their market share in credit to