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      Question

      What was the compound annual growth rate (CAGR) of the

      banking system’s credit exposure to NBFCs between FY23 and FY24?
      A 15% Correct Answer Incorrect Answer
      B 17% Correct Answer Incorrect Answer
      C 18% Correct Answer Incorrect Answer
      D 21% Correct Answer Incorrect Answer
      E 23% Correct Answer Incorrect Answer

      Solution

      The banking system’s credit exposure to NBFCs grew at a CAGR of 21% between FY23 and FY24 . However, this trend slowed down to about 6% by February FY25. This shift reflects evolving lending patterns and regulatory interventions, such as RBI’s changes in risk-weight norms for NBFC loans.

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