India’s Leading BFSI and FinTech Companies 2023

India’s Leading BFSI and FinTech Companies 2023 | 41 [ INDIAN NBFCs SECTOR OVERVIEW ] Net Interest Margins of Indian NBFCs Return on Equity on Indian NBFCs Source: RBI Capital to Risk weighted asset ratio (CRAR): As per the regulation, NBFCs are required to maintain a minimum CRAR of 15% including both on and off-balance sheet exposures. The CRAR of sector improved from 26.5% in Mar’21 to 27.6% in Mar’22. CRAR (%) Source: RBI The CRAR of sector improved from 26.5% in Mar’21 to 27.6% in Mar’22 Large bor rowi ngs account s (exposure of INR 50 million and above) constituted 51.3 per cent of gross advances extended by NBFCs. They, however, contributed around 76.6 per cent of total NPAs at end-Mar’22. I n 2019 , Hou s i ng F i nance Companies (HFCs), too, have been brought under the ambit of RBI so as to harmonise the regulation between NBFCs and HFCs. At the end of Mar’22, there were 95 HFCs, of which only 15 were deposit taking entities. Two-thirds of HFCs borrowing are through debentures and from banks. Both Gross NPA and Net NPA ratios have improved for HFCs in FY22. Net NPA declined from 2.8% in FY21 to 1.8% in FY22. Dun & Bradstreet