NBFC funding to rise over total net worth of small business loans: Icra

An equity capital of Rs 2,000 crore raised, says ratings agency

Non-bank finance companies (NBFCs), focused on small business loans (SBL), have raised an equity capital of around Rs 2,000 crore, said ratings agency Icra.

This is more than the combined net worth of these entities as on March 31, 2017 and around 1.5 times the total capital raised by them over the last three financial years, said the report. The report has sampled 10 SBL-NBFCs, including three financial technology companies.

The strong investor interest is expected to increase portfolio by six times to Rs 23,000 crore by March 2020.  The sample SBL-NBFCs’ portfolio grew by nearly four times to Rs.