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BANK Bank: According to the regional deployment of credit data from the Reserve Bank of India (RBI), the growth in bank credit to non-banking financial companies (NBFCs) slowed sharply to 6.4 per cent in October compared to 18.3 per cent in the year-ago period, Due to which the growth of total credit given to the service sector has decreased. Overall growth in credit offtake by the services sector declined to 14.1 per cent in October compared to 20.4 per cent year-on-year, mainly due to deceleration in credit growth to NBFCs and the trade sector.

The outstanding bank credit to NBFCs stood at Rs 15.36 trillion in October 2024, compared to Rs 14.44 trillion in the same month last year. It was Rs 15.29 trillion in September 2024 and Rs 15.48 trillion in May this year. In its September bulletin, RBI noted that finance companies have diversified their funding sources and reduced borrowing from banks after the central bank increased the risk weight on bank borrowings. In November 2023, the RBI increased the risk weight on NBFCs by 25 percentage points to prevent potential build-up of risks in these sectors. In the services sector, growth in loans to the business sector slowed to 12.4 per cent in October 2023 from 20.7 per cent. However, the pace of growth in loans to commercial real estate increased from 14.8 percent to 26 percent.