July 3, 2025

Anil

Loans

NBFC loans shrink as shadow banks turn to bonds; RBI relief fails to lift credit

Mumbai: Bank credit growth to non-banking financial companies (NBFCs) continues to lose steam, even after the Reserve Bank of India (RBI) rolled back tighter risk-weight norms earlier this year to support the sector. Experts said NBFCs are increasingly turning to bond markets for cheaper and quicker funding, while stress in microfinance and unsecured business loans

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