According to
the latest central bank data, NBFCs recorded robust loan growth alongside
improved asset quality, a combination that highlighted the sector’s resilience
and disciplined risk approach. “2025 marked a year of measured strength for
India’s NBFC sector. Even as global uncertainty and evolving macroeconomic
conditions tested financial systems worldwide, NBFCs delivered solid credit
expansion and improving asset quality, reinforcing their structural relevance
within India’s financial ecosystem,” said Manish Shah, MD and CEO of Godrej
Capital.
The year also marked a widening of access. Digital transformation
played a decisive role as NBFCs used alternative data and digital payment signals,
including QR payment histories, to extend faster formal credit to underserved
merchants and small enterprises. “This technological led shift has helped
bridge financial inclusion gaps and fostered stronger engagement with MSME
borrowers,” Shah said, pointing to how technology-led models are reshaping
lending beyond traditional frameworks.
Housing finance remained a steady pillar through 2025. Easing
borrowing costs and favourable sentiment supported home loan demand, while
portfolios such as gold loans and affordable housing continued to scale, with
some NBFCs reporting double-digit AUM growth and profit increases, reflecting
the breadth of growth across segments.
Looking ahead, the outlook for 2026 is cautiously optimistic.
Industry projections indicate sustained momentum, supported by improved
liquidity and regulatory tailwinds. “As NBFCs sharpen their focus on deeper
market penetration and sustainable underwriting, the sector appears poised for
responsible scale,” Shah said, adding that the momentum of 2025 sets the base
for a balanced, growth-oriented year ahead.