look news india
Indian economy is becoming the fastest growing economy in the world. Even the World Bank and IMF have accepted this. Now global rating agency Moody's has also put its seal of approval on this. Meanwhile, Moody's Ratings has estimated the Indian economy to grow at the rate of 6.6 percent in the current financial year.
Economy will grow at the speed of 6.6%
Moody's rating agency said strong credit demand coupled with robust economic growth will support the profitability of the NBFC sector and the sector will see robust growth. The agency said in its latest report that we expect India's economy to grow at 6.6 percent in the fiscal year ending March 31, 2025, and 6.2 percent in the next fiscal year.
What did the rating agency say about NBFC?
According to Moody's, the Indian economy is expected to grow at the rate of 8 percent in the last financial year 2023-24. Talking about NBFCs, the report said that the cost of funds is rising for non-bank financial companies in India and the strong economic condition will help NBFCs maintain asset quality. However, increase in interest rates may increase the debt burden on their customers. This will lead to stronger credit growth in NBFCs which will reduce cost pressure on their profits and strengthen the sector.
Will play an important role in India's development
The report said NBFCs play a vital role in meeting the credit needs of people and businesses in India's broader economy. The largest 20 NBFCs have a strong market position and a long history of offering home loans or auto loans or other specific types of loans. According to the agency, most of these are owned by the government or large corporate groups which will provide stability to their funding in times of stress.