Non-banking finance companies (NBFCs), including housing finance firms, in India would face increased funding challenges in FY24, impacting their growth aspirations, according to India Ratings (Indi-Ra).
The public sector banks, which have been active in providing funds to NBFCs, are reaching the internal exposure limit. Some of the key lenders to finance companies include SBI, Canara Bank, Punjab National Bank, and Bank of Baroda.
Ind-Ra said the funding was likely to become more expensive and restricted as lenders realigned their pricing as well as funds allocation, factoring in their own increased cost of funds and constraints of balance sheets.
Banks and capital markets together account for most of the funding sources for NBFCs (April-December 2022 9MFY23: 73 per cent).
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Abhijit lele
