Mumbai, Dec. 5 -- Bank loans to non-banking financial companies (NBFCs) between April and October recorded the highest growth in five years, data from Reserve Bank of India (RBI) showed. This, at a time when NBFCs were finding it hard to raise money from the market.

According to the data on sectoral deployment of bank credit, outstanding bank loans to NBFCs stood atRs5.62 lakh crore on October 26. This is 13.3% higher than the Rs4.96 lakh crore of loans as on March 30, 2018. In absolute terms, it is an increase of Rs66,200 crore.

Data for the previous two fiscals, FY18 and FY17, show that in the April-October period, loans to NBFCs had fallen 7.6% and 5.2%, respectively. However, in FY14, growth in bank credit to NBFCs in April-October st...