Fitch gives cautious outlook for NBFC sector

….Last year, the Reserve Bank of India (RBI) excluded bank loans to NBFCs from the priority sector category, thereby reducing banks' incentives for direct lending to NBFCs.  Presently, about 65 per cent of the NBFC funding comes from banks. The RBI's move "will increase funding costs for NBFCs in 2012 and beyond," Fitch said, adding that the outlook for 2012 is stable……

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