NBFCs stay on growth track as asset quality remains stable: Report
Indian non-banking financial companies (NBFCs) are showing strong growth and stable asset quality despite geopolitical uncertainties. While most sectors are performing well, housing finance companies have seen slower growth due to balance transfers.
Why it matters
The performance of NBFCs is a key indicator of credit health and economic resilience in the Indian financial market.
India’s non-banking financial companies (NBFCs) are likely to maintain steady growth in the near to medium term, with credit demand remaining healthy despite geopolitical uncertainties, according to brokerage firm 360 ONE Capital.The brokerage said management teams have retained their FY27 and medium-term growth guidance, while asset quality is expected to remain broadly stable.However, pressure on lending yields and margins, particularly for gold and affordable housing financiers, will remain key monitorables.NBFC earnings show strong growth in Q1 FY27NBFCs under 360 ONE Capital’s coverage, excluding power financiers, reported strong earnings in the first quarter of FY27.Net interest income (NII) grew 23.9 per cent year-on-year, while operating profit increased 24.9 per cent and profit after tax (PAT) rose 36.9 per cent.
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