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2nd Bog-Top 100 NBFCs in India - Edited

NBFCs offer banking services like loans and credit facilities but cannot accept deposits. They are regulated by the Reserve Bank of India. The top NBFCs in India include Muthoot Gold Finance and HDB Home Loans. NBFCs have grown strongly in recent years, increasing their share of total credit from 15.2% in 2014-15 to 19.2% in 2018 due to slower lending from banks and their quicker response times. The growth of NBFCs is also attributed to some credit demand being met by NBFCs as banks face lending restrictions.

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246 views2 pages

2nd Bog-Top 100 NBFCs in India - Edited

NBFCs offer banking services like loans and credit facilities but cannot accept deposits. They are regulated by the Reserve Bank of India. The top NBFCs in India include Muthoot Gold Finance and HDB Home Loans. NBFCs have grown strongly in recent years, increasing their share of total credit from 15.2% in 2014-15 to 19.2% in 2018 due to slower lending from banks and their quicker response times. The growth of NBFCs is also attributed to some credit demand being met by NBFCs as banks face lending restrictions.

Uploaded by

Aditya Srivastava
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We take content rights seriously. If you suspect this is your content, claim it here.
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Know exact details about top 100 nbfc companies in India in the FY 17-18

NBFCs are known for offering banking facilities and financial services but their functioning and
purpose are way back different from the legal interpretation of a centralized bank. NBFCs are
covered under Banking regulations which are set by Reserve Bank of India. They offer banking
services like credit facilities, retirement planning, loans, TFCs, stocking, and investment deals in
the market. This is why they are unable to take any type of deposits from public banks.

The list of top NBFC in India includes Muthoot Gold Finance, HDB-Home loans and many more.
Over the years, NBFCs have grown strongly especially in the last three to four years. The overall
share of NBFCs and HFCs in the total credit has risen from 15.2 percent in FY 14-15 to 19.2
percent in FY18. This growth has been recorded due to the slowdown in the lending by
centralized banks, especially public sector banks (PSBs) and due to the model of these entities,
there has been a quicker response time and good connectivity between consumer and the
market.

Since there are 11 PSBs under the Reserve Bank of India's Prompt Corrective Action, it implies
that there has been a lot of pressure on the passing of credit. For three financial years to the
ended last year, the composite credit growth of banks under PCA scanner has been recorded to
be negative. It is also noticed that some amount of the credit demand in the economy has got
channeled to NBFCs and HFCs which has further lead to the increase in their share in overall
credit.

It is also observed that the interest rates of the top 100 NBFC companies in India have also
fallen from 2014 till 2017. In these scenarios, investment in mutual funds has become a
favorable option among investors. Therefore an assumption can be made that assets under
management (AUM) for MFs witnessed a significant growth which would rise by 75 percent
between March 2016 and March 2018 and consist of the addition of more than Rs 9 lakh crore.
It comes as a significant part in the year after the addition of Rs 9 lakh crore. Even the
borrowing of commercial papers like short-term borrowings to MFs increased from Rs 50,000
crore in March 2016 to Rs 1.2 lakh crore in September 2018.

The major contributor to the growth of NBFC-HFC is the combination of reduced bank-lending
and easy availability of low-cost funds in the presence of continued credit demand in the
economy. The incremental credit flow in the FY-16-17 was recorded to be around 15 percent in
FY 12-13 and FY 13-14. Strong economic growth of the past four years led to the robust
expansion of NBFCs which will not last long. It is predicted that newer NBFCs will witness their
first downturn and companies with models can withstand downturns.

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