Financials hit a new high in India

Market cap share of banks and NBFCs touches record 22.3%, as boom in retail lending continues unabated

Lending and borrowing money is now India’s fastest-growing segment, and the successful industry and lenders are the latest darlings of equity investors. The share of banks and non-banking finance companies (NBFCs) in the market capitalisation (market cap, or m-cap) of all listed companies is now at an all-time high, as manufacturing companies and non-financial services such as information technology (IT) battle demand slowdown. 

Banks and NBFCs, including insurance companies, now account for 22.3 per cent of the combined m-cap — the highest in at least two decades, and up from 17.2 per cent in March 2014 and 17.3 per cent