Rate hikes fail to stem rise in loans to high-risk sector

The Reserve Bank of India (RBI) recently released recommendations that aim to regulate non-bank financial companies (NBFCs) further. A look at loan growth to the sector makes it obvious why.

The RBI might have made some headway in curbing loans through interest rate hikes, but these hikes seem to have impacted productive loans more than speculative or consumption loans.

Loans to NBFCs, for commercial real estate and personal loans have picked up pace, according to the last RBI update.

Posted in: RBI