Credit disbursals by non-banking finance companies (NBFCs) witnessed continual fall despite the regulatory measures, taken to boost credit to the sector.
According to the data compiled by credit bureau CRIF High Mark, total NBFC sanctions dropped to Rs 1.79 lakh crore at the end of June as compared to Rs 2.49 lakh crore during March-end.
A Year-on-year analysis of the situation shows 30 percent steeper fall in terms of sanctions.
The report reveals that the loans worth Rs 2.57 lakh crore had been sanctioned by non-banking lenders in June last year which went up to Rs 2.76 lakh crore at the end of September, the month when infrastructure financier IL&FS collapsed.
It fell to Rs 2.2 lakh crore at the end of December, a fall of nearly 20 percent from the September levels.
“The decline this quarter is more significant because of the data sets, combined with the not so positive economic indicators, paint a worrying picture,” said Parijat Garg, Senior Vice President, CRIF.
“The hope is pinned on the festive season to bring some relief to the sector because the first quarter is a slow credit period. Also, several measures were announced by the government and the RBI in the July-August period which may have some positive impact as well in the coming quarters,” he added.
The data till June reports that housing, property and auto loan segments were among the worst hit sections.