Banks which account for 56 percent of industry retail credit are likewise enhancing their concentrate on retail sectors due the pressures on corporate credit. Competitive pressures on retail-focussed NBFCs are to magnify, it stated, including public sector banks which are in pressure by weak asset quality and revenues and large capital requirements might enhance providing to the less capital intensive retail sector.

Retail credit from non-banking finance business (NBFCs) is expected to grow by 19-22 percent in the 2016-17 financial starting from April this year, it stated.

According to the company, retail credit development is likely to be selected up by enhancement in commercial vehicle sections, better development for gold loans and microfinance sector together with unsecured loans and loans against home.

Retail credit from NBFCs stood at Rs.4.7 trillion at the end of calendar year 2015 with a year-on-year development of nearly 19 percent.

The company approximates NBFCs will require to mobilize Rs.2.2-2.4 trillion financing in 2016-17, from which bond mobilisation might be to the degree of Rs.600-700 billion.