in FY16. Banks are the major source of funds for NBFCs-D increased to 659 bn approx. 19.3% growth from 552 bn in FY15. Debentures being the second major source of funding, witnessed a hike of 38.6% during FY16 grew from 389 bn to 539 bn in FY16. Total income recorded a growth of 26.8% over FY15. Balance sheet performance of NBFCs-ND-SI The balance sheet of NBFCs-ND-SI grew by 10.6% in FY16. Loans & Advances grew by 12.5% from 9,516 bn to 10,709 bn over FY15. Total borrowings grew by 9.8% from 9,411 to 10,335 in FY16. During FY16, funds were mainly raised through debentures, borrowings from banks and commercial papers. Investments displayed marginal growth of 0.5% in FY16. Asset quality & capital Adequacy The NBFC sector registered a credit growth of 15.5% in FY16. The quality of assets of the sector continued to deteriorate since 2012. However, the NPAs of NBFCs are lower than that of the banks.
Gross NPA to Gross Advances Ratio
0 1 2 3 4 5 6 7 8 9
Source: RBI, Dun and Bradstreet Research
The CRAR of the NBFC sector for FY16 remained well above the regulatory guidelines having minimum requirement of 15% of their risk weighted assets. GNPAs of the NBFC sector for FY16 as a percentage of total advances stood at 4.5% from that of 5.1% in Sep’15. NNPAs as a percentage of total advances displayed similar performance for FY15 & FY16 and stood at 2.5%.
Asset Quality (In %)
0 1 2 3 4 5 6 7 8 9 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16
Asset Quality (in %) NNPA to Total Advances Asset Quality (in %) GNPA to Total Advances
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