New Delhi: Public sector banks have sanctioned support to non-banking finance companies (NBFCs) and housing finance companies (HFCs) amounting to a total of Rs 4.14 lakh crore, including Rs 0.97 lakh crore for pool-buyouts of assets of NBFCs/HFCs between October 1, 2018, and September 30, 2019, Parliament was informed on Tuesday.
As per Reserve Bank of India (RBI), the NBFC sector faced liquidity stress following default by a large NBFC on account of which stress was particularly felt in the third quarter of the fiscal 2018-19, the government said.
“During the period October 1, 2018 and September 30, 2019, public sector banks have sanctioned support to NBFCs/HFCs amounting to a total of Rs 4.14 lakh crore, including Rs 0.97 lakh crore for pool-buyouts of assets of NBFCs/HFCs,” Finance Minister Nirmala Sitharaman told Rajya Sabha in a written reply.
The RBI had said that the NBFC sector witnessed a growth of 20.6 percent in credit outstanding during fiscal 2018-19 as against an increase of 17.9 percent during 2017-18. (PIB)