‘NBFC credit disbursal to remain weak in India’

New Delhi: World Bank has cautioned India that credit flow from the non-bank financial companies (NBFC) is expected to linger while growth will remain subdued at 5 per cent for the current fiscal. “In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5 per cent in FY 2019/20, which ends March 31 and recover to 5.8 per cent the following fiscal year”, the World Bank said in its January 2020 Global Economic Prospects. The World Bank assessment may have come from the trail of events where, despite government intervention, credit disbursals by the NBFCs have not taken place satisfactorily to the extent it should be. NBFCs are lifeline of rural demand as much of the Indian economy is informal where taking a bank loan is cumbersome for rural and tier II city population. Inadequate credit flow from commercial banks and non-banking financial companies (NBFCs) to industry has frequently been cited as a major constraint to growth. (IANS)

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