Credit growth of NBFCs to be 8-10% in FY14 against 19% achieved in FY13: Icra

Icra said difficulties being experienced in commercial vehicle, construction equipment and gold loans will result in non-bank lenders' credit growth from retail segment to halve in FY'14 to 8-10 per cent, reported PTI.

"Overall, ICRA expects NBFCs to report an 8-10 per cent growth in retail credit in FY2014, as against the 19 per cent achieved in FY2013," it said in a note.

According to the rating agency's estimate, the credit by the sector has grown by only 5 per cent during the first nine months of the fiscal ending December 31, 2013 as against the 15 per cent which was achieved during the same period last year.

The dip in credit growth can be attributed to "the significant slowdown being caused mainly by de-growth in the commercial vehicle (CV), construction equipment (CE), and gold loan segments", it said.

Read more about: credit growth, nbfc, icra
Story first published: Thursday, March 13, 2014, 9:10 [IST]
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