Retail NBFCs outdo private banks in profits as lending picks up pace

Non-banking finance companies (NBFCs) have for the first time reported a higher combined net profit than that of private sector banks. With retail lending picking up pace, NBFCs have emerged as the fastest-growing and the most profitable segment for lenders. In the March quarter, retail NBFCs, such as Housing Development Finance Corporation, Indiabulls Housing Finance, Bajaj Finance and Mahindra & Mahindra Financial were more profitable than some of the private sector banks.
 
Listed retail NBFCs reported a combined net profit of Rs 108 billion during the January-March quarter, compared to private sector banks' net profit of Rs 72.9 billion.