Non-Banking Finance Companies

Corporate bond issuances surge as non-bank channels match banks in FY26

The brokerage believes Piramal is entering a phase where scale benefits, lower operating costs and a sharper credit framework will drive meaningful expansion in return ratios.

Non-bank lenders' home loan growth will slow down in FY26 owing to aggressive play by state-run banks in the market, a report said on Wednesday. Non-bank lenders' assets under management are likely to grow by 12-13 per cent, down from 14 per cent in the preceding fiscal, despite a slew of tailwinds, the report by Crisil said. The challenges faced by non-bank lenders include "intense competition" from banks, which continue to dominate the prime home loan segment, it added. "Public sector banks have upped the ante and surpassed prime-focused housing finance companies (HFCs) last fiscal and in the first half of this fiscal," the agency's director Subha Sri Narayanan said. Narayanan said competition in pricing is evident from the strong growth in lower-interest-rate home loans of banks, as the share of the sub-9 per cent interest rate portfolio increased to over 60 per cent as of March 31, 2025, from 45 per cent last year. "Many large HFCs are facing increased customer churn through .

Thus far in the calendar year 2025, the stock price of L&T Finance has zoomed 122 per cent, as compared to 5.5 per cent rise in the BSE Sensex.

With evolving tech, funding models and regulation, bank licences are no longer the premium growth lever for NBFCs, and strategy, agility matter now, said experts at Business Standard BFSI Summit 2025

NBFCs, RIAs, and stockbrokers dominate India's expanding account aggregator ecosystem, serving over 24 million users in FY25

S&P Global Ratings expects NBFCs to expand loan books at 21-22% in two years, outpacing banks' 11-12% growth, with India's household leverage set to rise to 31% by FY30

Muted transmission of repo rate reductions keeps borrowing costs high, with analysts expecting full benefits to flow in gradually over 18 months

Their credit expanded 17 per cent in FY25 and 24 per cent in FY24, respectively

Following India's rating upgrade, in investment grade space, spreads have compressed by 10 - 15 bps while in high yield space spreads have compressed by 25 - 30 bps

Morgan Stanley sees more FY26 earnings downgrades for NBFCs and advises investors to focus on stocks with strong fundamentals and valuation safety amid sector volatility

State-owned non-banking finance firm REC Ltd will increase its exposure to renewable energy projects by about Rs 2.5 lakh crore in next six years to aid India's target of having 500 GW of non-fossil fuel energy by 2030. REC currently has an exposure of about Rs 53,000 crore in renewable energy projects with a total loan book of Rs 5.67 lakh crore as on March 31, 2025. The company has planned to achieve a loan book of Rs 10 lakh crore including Rs 3 lakh crore exposure in renewable energy project by 2030. Renewable energy is a key area where the company will focus in the coming six years in view of nation's ambitious target of having 500 GW renewable energy by 2030. Talking to PTI, REC Chairman and Managing Director Jitendra Srivastava said, "Currently, our loan book stands at around 5.67 lakh crore. and we are trying to aim for a loan book of 10 lakh crore by 2030. Out of this, we would like to see the renewable sector touching around 3 lakh crore, which is currently around Rs 52,0

Such FDs are similar to those offered by commercial banks but carry a higher interest rate, as well as risk of default

NBFCs should not lose sight of fairness to the customer even as they pursue scale, speed, and profits, Swaminathan added

The reversal in risk weights on MFI loans from 125 per cent to 100 per cent and 75 per cent will help reduce risk weighted assets or RWAs for banks

Following the increase in risk weights, bank loan growth to shadow banks fell sharply

The provisions and write-offs of these MFIs jumped to Rs 2,357 crore in Q3fy25 from Rs 378.1 crore a year ago

RBI's punitive actions over the last year have encompassed both banks and non-banks

While lenders offer fixed rate auto loans, unsecured personal loans, not many banks and NBFCs have fixed rate products for home loans

In December, the restriction was lifted for Navi Finserv, and this month, it was removed for the remaining three NBFCs