NBFC bad loans rise to 5% in 5 years: RBI

 

The Reserve Bank of India (RBI) has said that the Non-banking financial companies (NBFCs), key players in the financial spectrum, have witnessed a steady deterioration in asset quality in the past five years. Gross non-performing assets (GNPA) ratio for NBFCs increased to five per cent at end-March 2017 from 2.9 per cent at end-March 2012.

In absolute terms, bad loans of NBFCs work out to around Rs 74,230 crore as the advances by the sector were Rs 14.84 lakh crore. On the other hand, the NPA ratio of banks increased to 10.21 per cent in June 2017 from 8.42 per cent in June 2016.