Expanding upon the NBFC horizon

The contribution of non-banking financial companies (NBFCs) in reinforcing real economic activity and standing as peripheral channels of credit intermediation along banks is well identified. Over the recent years, NBFCs have branched into considerable extension in terms of size, complexity, and interconnectedness within the financial sector.

There are over 9,680 NBFCs registered with the Reserve Bank of India (RBI) as of January 2022. In terms of their activities, NBFCs finance more than 80% of equipment leasing and hire purchase activities in India. Their public funds increased from USD 278.23 billion in 2016 to USD 470.74 billion in 2020, at a CAGR of 14.04%.

NBFCs have pioneered into retail asset-backed lending and microfinancing to serve non-banking customers. They aim to become a one-stop shop for all financial services.

Read our paper, 'Expanding upon the NBFC horizon' to know more!


Expanding upon the NBFC horizon September 2022