The balance sheet size of non-bank financial companies (NBFCs) grew by 17.2 percent to Rs 26 trillion in September 2018 from Rs 22.2 trillion in September 2017, a Reserve Bank of India (RBI) report showed.
Net profit of sector increased by 16.2 percent during the half year ended September 2018 as compared to 22.9 percent during the year ended March 2018, RBI said in the Financial Stability Report released.
Gross non performing assets of the NBFC sector as a percentage of total advances rose to 6.1 percent in September 2018 from 5.8 percent in March 2018, the report said.
The sector saw a 5.8 percent increase in share capital in September 2018 whereas borrowings grew by 17.2 percent, it said.
Loans and advances of the NBFC sector increased by 16.3 percent and investments increased by 14.1 percent, the report highlighted.
The sector's capital to risk-weighted assets ratio (CRAR) decreased to 21 percent in September 2018 from 22.8 percent in March 2018.
NBFCs are required to maintain a minimum capital level consisting of tier-I and tier-II capital, of not less than 15 percent of their aggregate risk-weighted assets.
The report said various stress test results for individual NBFCs indicate that around 8 percent of the companies will not be able to comply with the minimum regulatory capital requirements of 15 percent.
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