Post-recapitalisation, banks' credit flow increases sharply in FY18

The share of net credit of housing finance companies (HFCs) in the total flow of credit nearly doubled from 6.2 per cent in FY14 to 11.7 per cent in FY18

Following the recapitalisation of banks undertaken by the government, the banking sector’s share in the flow of credit increased sharply in FY18.

However, in FY19 (till mid-November), the relative proportion of domestic banks’ share in the flow of credit and that of non-bank resources was almost evenly matched, said the financial stability report of the Reserve Bank of India.

Moreover, the report mentions that with regard to the flow of resources from domestic non-bank sources, the share of net credit of housing finance companies (HFCs) in the total flow of credit nearly doubled from 6.2 per cent in FY14 to 11.7 per