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Non-Banking Finance Companies
Non-banking finance companies' (NBFCs) reliance on bank borrowings is likely to rise in FY27 due to lower interest rates, a rating agency said on Wednesday. The share of bank borrowings, which rose to 43 per cent on the back of higher activity in the second half of the recently concluded FY26, will inch up further to up to 45 per cent by the end of the ongoing fiscal, Crisil Ratings said. It attributed the shift in preference to lower interest rates in the bank lending market, which is likely to lead to a tapering in the debt capital market issuances. "While bank lending rates continued to decline throughout last fiscal, bond yields, after declining in the first half, inched up in the second half and remain elevated," the agency said. Additionally, the share of external commercial borrowing (ECB) issuances will also be muted in the near term, owing to geopolitical uncertainties and the resultant exchange rate volatility, it added. In such a scenario, securitisation is expected to
: Non-banking Financial Companies (NBFCs) continued to drive activity in the commercial paper (CP) market in March, even as corporates turned cautious amid elevated short-term borrowing costs, a report by India Ratings and Research (Ind-Ra) said. The rating agency expects the divergence in borrowing patterns to persist, with NBFCs continuing to access the CP market actively to meet funding requirements, particularly during the financial year-end period, while corporates remain selective due to higher funding costs and comfortable internal liquidity. March typically marks the peak funding requirement period for NBFCs, and their demand has remained strong despite the rise in yields, the report noted. Reflecting this trend, CP issuances by NBFCs surged to Rs 70,300 crore in March 2026, up from Rs 45,500 crore in February 2026. In contrast, corporate CP issuances declined sharply to Rs 26,600 crore from Rs 40,700 crore during the same period. "The current environment suggests that NBFC
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 .