NBFC PERFORMANCE AND OUTLOOK: NAVIGATING A COMPLEX FINANCIAL ECOSYSTEM
- Credit Rating Agency in India
- Industry Report
- NBFC PERFORMANCE AND OUTLOOK: NAVIGATING A COMPLEX FINANCIAL ECOSYSTEM
India’s financial system is highly diverse, with NBFCs playing a key role alongside traditional banks. Originating in the 1960s to provide hire-purchase and leasing services, NBFCs have expanded into vehicle and housing finance, infrastructure lending, microfinance, and wealth management. Regulated by the RBI since 1963, they gained prominence during the 1990s financial liberalization. NBFCs are crucial for financial inclusion, providing credit to underserved households and small businesses, supporting key sectors like infrastructure and MSMEs, and facilitating capital market development through investment and securitization.