Bank Credit to NBFCs increases 10% to Rs 10.5 trn in FY22

June 03, 2022
Current Context: As per Recent report Bank credit to NBFCs grew double-digit in FY22 as it was increased by 10.4 percent compared to earlier.
Bank Credit to NBFCs increases 10% to Rs 10.5 trn in FY22
  • The report has stated that bank credit to NBFCs grew double-digit in FY22 with outstanding bank credit rising by 10.4 percent to Rs 10.5 lakh crore.
  • According to an analysis by Care Ratings, bank credit to non-banking financial companies (NBFCs) expanded by Rs 99,000 crore in FY22, from FY21.
  • The percentage share of funds deployed by mutual funds in commercial papers of NBFCs in FY22 stood at 4.4% of debt assets under management (AUMs), compared to 3.6% in FY21.
  • Apart from that banks' credit exposure to NBFCs fluctuated around Rs 9 lakh crore for FY22 and crossed Rs 10 lakh crore threshold in December 2021.
  • In addition to it, NBFCs issued more CPs to fund IPOs as they shifted from long-term to short-term.
  • There has been increasing in investments of mutual funds' debt exposure through commercial papers and corporate bonds, to NBFCs rose 14.3% to Rs 1.7 lakh crore in FY22.

Question:

Q.1 According to the report, bank credit to NBFCs has been increased to _________ crore in FY22?
a. 80,000 crore
b. 99,000 crore
c. 50,000 crore
d. 85,000 crore

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