NBFCs are not dying to become banks: Industry leaders at BS BFSI Summit

NBFC have certain disadvantages compared to banks on the liability side and they don't have access to demand deposits like commercial banks but this is not a big impediment to growth of the industry

The non-banking financial company (NBFC) sector has been under the scanner since the 2018 Infrastructure Leasing & Financial Services (IL&FS) crisis when the industry lost some of the market share to banks in recent years. But the industry’s chief executives remain confident of the long-term growth potential of NBFCs in India, given their specialised lending on the asset side, last-mile reach, and a well-capitalised balance sheet.

“Over the years, NBFCs have faced many crises. Thanks to a strong regulatory response, they have always come back stronger. Even in 2018, none of the major NBFCs folded up except for IL&FS. The