Mumbai: RBI's measures to curb bank finances in some segments of NBFCs appear to have slowed growth to financial companies.
Loans sanctioned by NBFCs fell from 4.47 lakh crore in Q2 FY23 to 4.28 lakh crore in Q3 FY24 – a decline of 4.2% over the previous quarter. Compared to the same period last year, loans fell 5.8%.
The decrease was largely due to long-term loans, which fell by 40% or Rs 10,365 crore to Rs 15,500 crore. Education Loan Sanctions, which are seasonal, saw a decline of 63% in the quarter – to Rs 4,553 crore from Rs 12,454 crore in the previous quarter. The third biggest drop was in home loans, where sanctions fell 13% quarter-on-quarter to Rs 47,199 crore.
Other segments that saw a quarter-on-quarter decline were loans under the government's credit guarantee scheme, installment purchase loans, loans against shares, invoice discounting, equipment finance and car loans. On the other hand, bank guarantees, loans for two-wheelers and consumer credit grew quarter-on-quarter.
Data provided by the Financial Industry Development Board and credit agency CRIF High Mark showed that consumer loans such as two-wheeler loans, consumer loans, gold loans, personal loans and education loans have done well growth year after year. Home loans, however, recorded a marginal decline of 2%.
Loan data from July 2023 onwards relating to HDFC — a financial company — will be included in HDFC Bank after its merger. While the annual numbers do not take the merger into account, the quarterly numbers for both quarters are post-merger.

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