India’s Leading BFSI and FinTech Companies 2023

India’s Leading BFSI and FinTech Companies 2023 | 39 [ INDIAN NBFCs SECTOR OVERVIEW ] Indian NBFC credit growth development, FY18 to FY22 Source: RBI Segmental distribution of credit by Indian NBFCs Source: RBI Gross advances of the NBFC sector grew by 7.6% to reach INR 29.1 trillion in FY22. Industry has been the largest beneficiary of credit (39% share in FY22) from the NBFC sector followed by retail (29% share in FY22), services (14% share in FY22) and agriculture (2% share in FY22). Credit growth to industry and retail sectors was subdued relative to the service sectorwhichgrew indouble digits. Within industry, about 86 per cent of industrial credit of NBFC goes to infrastructure, which grew at just 1.6 per cent in FY22, dragging down the overall credit growth. The share of credit to the retail sector dropped by 70 bps to 28.5% in FY22. Vehicle loans, which forms the biggest component of the retail credit portfolio of the NBFCs declinedduringFY22. Accordingly, the share of vehicle loans, which accounted for about 45 per cent of NBFCs’ retail portfolio at the end of Mar’21, declined to around 40 per cent at end of Mar’22. Since FY19, banks have gained market share from NBFCs in the vehicle loan segment. Dun & Bradstreet