above. the complimentary role of the financial sector and all the regulators hardly needs overemphasis in the context of nbfcs morphing as game changers for providing the last mile connectivity and closing the loop as regards financial inclusion. in this context, nbfcs have a special responsibility against the background of the need to improve the customer service by conducting their operations as per the best practices of corporate governance. in the ultimate analysis, adhering to best corporate governance and ethical practices is the only way for gaining the confidence of their customers in particular, and the society in general. consequently, the nbfc sector would be able to garner greater trust of both its customers and the society. that would provide the springboard for increasing their business levels in the process of fulfilling their role as game changers in the areas mentioned above. nbfcs becoming true game changers would be a sweetener for financial inclusion efforts in our country. thank you. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

central bankers ’ speeches nbfc sector exhibited counter cyclical movements in 2011 – 12. in other words, nbfc sector clocked a growth of 25. 7 per cent in 2011 – 12 although gdp growth decelerated to 6. 3 per cent in 2011 – 12 from 10. 5 per cent in 2010 – 11. 3. 2 credit growth credit growth across nbfc and banking sectors is presented in chart 4. nbfc – credit grew more rapidly as compared with the banking sector. nbfc credit witnessed a cagr of 24. 3 per cent during the period between march 2007 and march 2013 as against 21. 4 per cent by the banking sector. although indian economy is slowing down in the recent past, the robust nbfc credit growth is largely on account of significant growth in infrastructure credit and retail finance. 3. 3 financing of infrastructure by financing infrastructure projects, nbfcs broaden capital formation of the country and thereby contribute to the overall economic growth and development of the country. bis central bankers ’ speeches the quantum of infrastructure finance provided by the nbfc sector witnessed a cagr of 26. 2 per cent during the period between march 31, 2010 and march 31, 2013. in absolute terms, nbfc finance to infrastructure increased from rs. 2228 billion on march 31, 2010 to rs. 4479 billion as on march 31, 2013 ( chart 4a ). nbfc finance to infrastructure accounted for 35. 8 % of their assets as on march 31, 2013 while in case of banks it was 7. 6 %. 3. 4 public deposits in line with rbi directions, the public deposits of nbfc sector ( including rnbcs ) declined considerably from rs. 247 billion as on march 2007 to rs. 106 billion as on march 2013 ( chart 5 ). the decline in public deposits is largely on account of rnbcs, which are going to exit from nbfc business model by june 2015. the public deposits of rnbcs decreased from rs. 202 billion as on march 31, 2007 to just rs. 35 billion as on march 31, 2013. bis central bankers ’ speeches 3. 5 inter - connectedness with the banking sector borrowings from banks is one of the major sources of funding for the nbfcs. nbfc borrowings from the banking sector increased manifold from rs. 542 billion as on march 31, 2006 to rs. 2508 billion in march 31, 2013 ( an increase