Banks turned wary of NBFCs months before IL&FS defaults1 min read . Updated: 15 Oct 2018, 08:50 AM IST
Bank loans to NBFCs fell by 6,000 crore during April-August, a stark contrast to the 82,000 crore loans given by banks to the economy in the same period
Indian banks seem to have turned wary of non-banking financial companies (NBFC) months before doubts on their liquidity position began to scare investors. The adjoining chart shows that bank loans to NBFCs fell by ₹ 6,000 crore during April-August. This is in contrast to the ₹ 82,000 crore loans given by banks to the economy in the same period. Consequently, the share of NBFCs in outstanding bank credit as of August fell marginally to 6.31% in August from 6.46% in March.
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