New Delhi, June 12: India’s Non-Banking Financial Company (NBFC) sector is projected to witness significant expansion, with its combined balance sheet expected to reach ₹92.9 trillion by FY28, according to a recent industry report.
The growth outlook reflects sustained demand for credit across retail, small business, and emerging consumption segments, supported by improving financial inclusion and digital lending adoption. NBFCs continue to play a critical role in complementing traditional banking channels by serving underserved and semi-urban markets.
The report indicates that the sector’s expansion will be driven by diversified lending portfolios, stronger risk management frameworks, and increasing reliance on technology-led underwriting and collections processes. Retail lending, in particular, is expected to remain a key growth driver, alongside MSME credit and housing finance segments.
Industry analysts note that NBFCs have steadily strengthened their balance sheets over the past few years, supported by improved asset quality, capital infusion, and regulatory reforms that have enhanced stability and resilience within the sector.
The projected growth to ₹92.9 trillion underscores the increasing importance of NBFCs in India’s financial ecosystem, particularly in bridging credit gaps and supporting consumption-led economic growth.
Experts further highlight that digital transformation, data-driven lending models, and fintech partnerships are likely to accelerate efficiency and expand reach, enabling NBFCs to scale operations while managing risk effectively.
As India’s financial landscape continues to evolve, NBFCs are expected to remain key contributors to credit expansion, entrepreneurship support, and inclusive economic development.