Friday, November 24, 2017

Crisil : NBFCs fortunes on the up trend

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According to rating agency Crisil, Non-banking finance companies (NBFCs) will continue to take away market share from banks in the next three years led by lending to mid-sized companies linked to real estate and infrastructure like roads increasing their share in the Indian credit market by 300 basis points to 19 per cent. 

The share of NBFCs in total credit in India has increased to 16 per cent from 13 per cent between the fiscal year ended March 2013 and 2017. 

The performance of NBFCs has been resilient so far due to their solid understanding of customers, track record of product innovation, efficient delivery systems, and differentiated value proposition. The challenge is balancing the risk-reward ratio as increasing competition puts pressure on yields says Crisil.

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