Hunt for deposits won't move the needle for crisis-hit NBFCs, say analysts

They won't find it easy to move predictable lump sum money away from banks: Experts

As cheaper sources of funding dry up, non-banking financial companies (NBFCs) — after a hiatus — are once again aggressively tapping depositors for capital. Seen as a sticky and predictable source of money, NBFCs are vying with some of the leading banks to woo deposit holders (see table).

Yet, experts say it is going to be a long and tough journey before NBFCs can grow their deposits to a sizable scale. 

A report by Morgan Stanley notes that deposits, including fixed deposits or FDs, form 3 per cent of the borrowing mix, on an average, for NBFCs. 

From these levels there may not