The profitability of non-banking financial companies (NBFCs) has improved because of robust growth in fund- and fee-based income. However, their non-performing assets (NPAs) have risen in Q3FY22 after falling in Q2FY22 due to the impact of the revised income recognition, asset classification and provisioning norms.
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Sector-wise, industries account for 41% of the total lending followed by retail and services.
The services sector, led by transport operators, trade and commercial real estate, has shown consistent improvement in credit growth.