‘Wholesale credit for non-banks to grow 21% annually till 2020'

Rating agency Crisil on Thursday said that the wholesale credit book of non-banking finance companies (NBFCs) and housing finance companies (HFCs), including real estate and infrastructure lending, is likely to grow at 21 per cent annually till 2020.

Asset quality in the segment has largely been stable because of robust controls, and despite an increase in infrastructure loan delinquencies, according to the report by rating agency Crisil. "The wholesale credit book of non-banks comprising real estate lending, infrastructure finance and structured credit is seen growing at a pace of 21 per cent annually till 2020, or 350-400 basis points faster than the retail and MSME (micro, small and medium enterprises) segments," it said.

Non-banks include NBFCs and HFCs, but excludes government-owned non-banks. With this, the share of wholesale credit in non-banks' overall credit pie would surge to nearly 20 per cent from just 12 per cent in 2014, according to the Crisil report.

The report said growth in real estate financing, which constitutes a tad over half of the wholesale credit book, would be driven by pent-up demand in affordable housing and rising ticket sizes stemming from funding consolidation.