In spite of widespread crisis surrounding the non-banking financial company (NBFC) sector, some of the large deposit taking NBFCs with good credit rating and an established franchise, have been able to post a significant growth in ‘public deposits’ in FY19.

“Growth in FY19 was driven because of a renewed focus by larger NBFCs, namely, Shriram Transport, Bajaj Finance, Mahindra & Mahindra Finance, Shriram City Union Finance, and Sundaram Finance, as cost of funds from other sources went up,” said AM Karthik, Vice-President & Sector Head-Financial Sector Ratings, ICRA.

According to ICRA, deposit-taking NBFCs account for about 15-17% of NBFC assets. The rating agency also estimates the total public deposits of NBFCs as on March, 2019 at about Rs 41,000 crore (provisional), up from about Rs 32,000 crore in March, 2018.