NBFCs expected to witness slower growth, need to diversify funding sources in 2024

India’s non-bank financiers are expected to face challenges in the coming year as they diversify their sources of funding and deal with increased competition. The Reserve Bank of India’s recent measure to increase risk weights on bank loans to non-banking financial companies (NBFCs) and unsecured loans is expected to make loans more expensive for NBFCs and their customers. This move has necessitated the diversification of funding profiles for these financiers. The regulator has taken precautionary control measures due to the expansion of unsecured consumption and digital lending in the industry. Tap for more at Livemint