NBFC credit growth to MSMEs more than 3x that of banks- RBI report
时间:2024-06-26 13:29:18 阅读(143)
Growth in loans given by non-banking financial companies (NBFCs) to the MSME sector was more than three times that of banks, benefitting from their ability to offer customised financing solutions, said the Reserve Bank of India (RBI) on Wednesday. In its latest report on the performance of the banking sector during 2022-23 and 2023-24 so far, the central bank noted that the co-lending framework for priority sector lending also facilitated the flow of credit by NBFCs to the MSME sector, leveraging on the low cost of funds of banks and the greater reach of NBFCs.
In comparison to the 12.7 per cent and 12.4 per cent year-on-year (YoY) growth in MSME credit by banks as of March 2022 and March 2023, the credit growth by NBFCs to MSMEs stood at 21.2 per cent and 42.4 per cent respectively.
As of March 2023, services MSMEs accounted for 66.6 per cent share of NBFC credit to the MSME sector vis-a-vis 33.4 per cent of MSMEs in industries.
Earlier this year, FE had reported that an increasing number of NBFCs are looking to tap theMSMEsegment as competition from banks has intensified in vehicle, gold and home loans other than sustained demand from small enterprises for credit.
Recently, the central bank had increased risk weight for bank lending towards consumer credit, including personal loans from 100 per cent to 125 per cent; NBFCs’ consumer loans from 100 per cent to 125 per cent; credit card receivables from 125 per cent to 150 per cent and for NBFCs’ credit card receivable from 100 per cent to 125 per cent.
However, according to the NBFC body FinanceIndustryDevelopment Council (FIDC), the move inadvertently has the potential to sharply reduce the flow of credit to MSMEs, self-employed and other sectors which rely upon credit from NBFCs. Risk weight is the capital required by banks to be set aside for loans disbursed.
FIDC said the cost of funds to these critical sectors is also likely to increase sharply, especially at a time when theMSMEand self-employed segments are emerging out of the Covid impact and are looking ahead to increase capital expenditure through modernization and expansion of productive capacity.
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