The business concentration in terms of total assets and total credit based on “Herfindahl– Hirschman Index (HHI)2” indicate that competition is greater in NBFC sector as compared with banking sector, as HHI for NBFC sector was found to be on lower side for the period ended March 2012 and March 2013.
1  Mid-term Review of Macro Economic and Monetary Developments: 2004–05: Internationally, acceptance of public deposits is restricted to banks, and non-banks including NBFCs raise resources from institutional sources or by accessing capital market. NBFCs are encouraged to move in this direction in line with international practices.