Non-banking entities in the financial services space are set to grow at the slowest pace in over a decade as the rate of expansion is expected to fall to 6-8 per cent in FY20, from 15 per cent in FY19, said rating agency CRISIL.
Constraints such as funding issues, rising borrowing costs, re-calibration as well as de-risking of loan portfolios and economic slowdown will weigh on the growth in the assets under management (AUM) of non-banks in FY20.
“Non-banks with strong parentage that account for about 70% of the sectoral AUM have been less impacted on the funding front. They are likely