DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Smt M. L . Kameshwari
Designation : senior Lecturer in CCP
Institute : Govt. Poly. For women,
Bheempunipatnam
Semester : VI Semester
Subject : Banking—II
Sub-Code : CCP-604(B)
Topic : Role of Non –Banking,
financial institution (7 to
8/18)
Duration : 50 minutes
Sub Topic : Growth of NBFC, reasons for
success and growth of
NBFC
CCP604(B). 61 to 62 1
Objectives
On completion of this period you would be
able to :
 Explain the growth of NBFCs
 List out the reasons for rapid growth of
NBFCs
 Explain the reasons for the success of
NBFCs

CCP604(B). 61 to 62 2
Recap:

In the last class we have discussed

about the

 Procedure for formation of a NBFC

CCP604(B). 61 to 62 3
Growth of NBFCs

 By the end of 2000 there is rapid growth of

NBFCs
 With total assets of Rs. 53,878 crores
 Aggregate public deposits of Rs. 19,342 crores
 The net owned funds of Rs.6,223 crores
 In the last three decades there is significant
development in the funding of NBFCs

CCP604(B). 61 to 62 4
Reasons For
Rapid Growth Of NBFCs

 Ability to attract household saving

 Relatively lower degree of regulation
on NBFCs
 When compared to banks

CCP604(B). 61 to 62 5
Reasons For
Rapid Growth Of NBFCs…

 High level of customer orientation

 Less formalities
 Higher returns to depositors
 Funding the unorganized sector

CCP604(B). 61 to 62 6
Reasons For
The Success of NBFCs

 Quick decision making

 Ability to take greater risk

CCP604(B). 61 to 62 7
Reasons For
The Success of NBFCs…

Focus on unorganized sector

 Flexible organisation
structure
 Better credit delivery
mechanism

CCP604(B). 61 to 62 8
Summary

In this class we discussed about

 The growth of NBFCs

 Reasons for rapid growth of NBFCs
 Reasons for the success of NBFCs

CCP604(B). 61 to 62 9
Quiz:

2. Over the last three decades there is

significant development in the
functioning of NBFCs

d) True
e) False

CCP604(B). 61 to 62 10
Quiz:

1. Unorganized
NBFC focus on ____________sector.

3. The regulation of RBI on NBFCs is lower

when compared to banks

c) true
d) false.

CCP604(B). 61 to 62 11
Frequently Asked Questions

1. State the growth of NBFCs in India.

2. What are the reasons for the success
of NBFCs.
3. Mention the reasons for the rapid
growth of NBFCs.

CCP604(B). 61 to 62 12