The drop in outstanding loans can be seen from how incremental credit was almost washed out in FY20. This year, while housing finance has improved, preliminary data shows that NBFC flow to the commercial sector is lagging. The sector may need more support in the form of credit and liquidity guarantees from public sector banks.
As a result, NBFCs and HFCs lost market share to banks in FY20, after a decade-long gradual rise
From 18 per cent a decade ago, non-banking financial companies and housing finance companies went to occupy a share of close to 29 per cent in market loans. A year after key companies in these sectors faced solvency crisis, their share in outstanding loan books marginally dropped.
 "nbfc, hfc, housing, loans, banks, realty, construction, default, sales")