The balance sheet size of non-bank financial companies (NBFCs) grew by 17.2 per cent to Rs 26 trillion in September 2018 from Rs 22.2 trillion in September 2017, a Reserve Bank of India (RBI) report showed.
Net profit of sector increased by 16.2 per cent during the half year ended September 2018 as compared to 22.9 per cent during the year ended March 2018, RBI said in the Financial Stability Report released Monday.
Gross non-performing assets of the NBFC sector as a percentage of total advances rose to 6.1 per cent in September 2018 from 5.8 per cent in March 2018, the report said.
The sector saw a 5.8 per cent increase in share capital in September 2018 whereas borrowings grew by 17.2 per cent, it said.
Loans and advances of the NBFC sector increased by 16.3 per cent and investments increased by 14.1 per cent, the report highlighted.
The sector's capital to risk-weighted assets ratio (CRAR) decreased to 21 per cent in September 2018 from 22.8 per cent in March 2018.
NBFCs are required to maintain a minimum capital level consisting of tier-I and tier-II capital, of not less than 15 per cent of their aggregate risk-weighted assets.
The report said various stress test results for individual NBFCs indicate that around 8 per cent of the companies will not be able to comply with the minimum regulatory capital requirements of 15 per cent.