mumbai even as nonbanks as a sector is facing stress the prospects are not all that bleak for a segment comprising retail lenders the total loan book of this segment is set to cross rs 10 lakh crore the biggest growth in this segment has been in personal loans and microfinancethe retail nbfc sector marks a sharp contrast to the wholesale lenders including real estate financiers who are facing tighter norms and may take time to recover according to data provided by rating agency icra the assets under management aum of retail nbfc was rs 91 lakh crore as of march 31 2019 this was on the back of a 22 growth in credit in fy19 with much of the increase in the first half the second half of fy19 had seen growth moderate to 95this moderation is expected to continue in the first half of fy20 due to the tight liquidity situation a revival is anticipated in h2fy20 driven by some easing of liquidity and retail nbfcs are expected to register an aum growth of 1517 in the current fiscal in terms of cumulative retail nbfc aum it would cross rs 10 lakh crore during the year the growth rate could be higher if the fund flow to nbfcs improves said icra vp sector head financial sector ratings am karthikaccording to icra the recapitalisation of public sector banks psbs and frontloading of the facility to avail liquidity for liquidity coverage ratio fallcr does provide some scope for further credit from the banking sector however the willingness of banks to actually lend further to nbfcs considering the steep increase in their exposure postseptember 2018 their own internal sectoral thresholds and their own ability to mobilise depositsfunds remains to be seen said karthik mutual funds too might find it difficult to invest in nbfcs due to tighter rulesthe positive outcome of this is that nbfcs are raising money through loan selldowns with the total quantum of loans sold by nbfcs in fy19 doubling to rs 1 lakh crore these loan selldowns were also largely subscribed by banks this also meant that nbfcs did not need additional capital