NBFCs - Asset Focus on Retail, Need to Diversify Liabilities

Synopsis:

A shift in the segmental distribution of credit with a tilt towards retail can be observed.
Asset quality has improved. Public sector NBFCs have reported a lower GNPA ratio compared to their private sector counterparts.
Large NBFCs (NBFC-UL)1 registered higher credit growth (y-o-y) of 21.9% and a better GNPA ratio of 3.4% as of September 2023 compared to the overall NBFC sector.
In H1FY24, NBFCs and HFCs remained the major issuers of listed bonds during the year, while banks and body corporates were their major subscribers.