Until the CRB scam exploded the popularity of non-banking financial companies (NBFC), this sector had witnessed galloping growth in the last few years. While the actual deposit levels remained much lower than in formal banking sector, the rapid rise of NBFCs could have been a challenger in a few years time.From just Rs 6746 crore in 1991, the regulated deposits with NBFCs grew to over Rs 53,000 crore in 1996. The annual growth touched a high of 60 per cent in 1995 but dropped to a still high rate of 43 per cent.The growth in the banking sector was more staid and steady. From a growth of 12 per cent in 1992, the growth picked up to 18.8 per cent in 1996. The 1996 figure for deposits was Rs 4 lakh crore. With proper regulation, the NBFC sector may just see fresh and genuine growth.
