Bank lending to NBFCs rose 31% in September 2022. Rating agency India Ratings has said that with the sharp rise in banks’ lending rates and stable rates in the capital market, large NBFCs could partially move to tap incremental funding through the capital market leaving bank funding open for small and mid-sized non-banks.
“While mid- & small-size NBFCs are majorly dependent on banks, banks also have selectively gained confidence in these NBFCs based on their performance during the pandemic and support shown by sponsors,” India Ratings said. “The agency expects the evolving funding ecosystem between banks and mid- & small-sized NBFCs is credit supportive.”
Source:
Economic Times
