Rating agency Icra today revised the outlook on NBFCs' retail credit growth upwards to about 17-19 per cent for FY18 and said the growth trend will hold in the current financial year also.
The total managed NBFC-retail credit of NBFCs stood at around Rs 7 trillion as on December 31, 2017 (Rs 6.1 trillion in March 2017), posting a year-on-year growth of 18.3 per cent, compared with nearly 15.5 per cent in FY17 and 19 per cent in FY16.
"The growth was supported by a healthy uptick witnessed in some key asset classes namely, commercial vehicles (CV), unsecured credit (including microfinance) and SME credit; these segments together accounted for about 60 per cent of the total NBFC-retail credit as of December 2017," said A M Karthik, assistant vice-president and sector head (financial sector ratings), Icra.
The credit growth had dipped, post demonetisation, and remained subdued because of the uncertainties around the impact of GST implementation, the report said.
The key target borrower segments of NBFCs