NBFCs vs Bank: NBFCs credit growth hits 20% in FY25; MFIs see 95% profit plunge as sector expands sharply
NBFCs surpassed commercial banks in credit growth during FY25, fueled by a surge in the Gold NBFC segment, reaching a 20% increase. While the overall sector saw improved efficiency and asset quality, Microfinance Institutions experienced a significant profit decline and rising NPAs. Larger NBFCs are diversifying funding sources, with lending increasingly focused on personal consumption and vehicle loans.
NBFCs surpassed commercial banks in credit growth during FY25, fueled by a surge in the Gold NBFC segment, reaching a 20% increase. While the overall sector saw improved efficiency and asset quality, Microfinance Institutions experienced a significant profit decline and rising NPAs. Larger NBFCs are diversifying funding sources, with lending increasingly focused on personal consumption and vehicle loans.
