Indian NBFCs face slower asset growth due to stricter regulations and rising risks.

Indian non-banking financial companies (NBFCs) are expected to see a slower asset growth of 15-17% in the next two fiscal years, down from 23% last year, due to tighter regulations and rising risks. Home loans and vehicle loans, making up 45% of NBFCs' assets, will maintain steady growth rates of 13-14% and 15-16% respectively. Housing finance companies focused on affordable housing will grow faster at 22-23%. The report highlights the need for NBFCs to diversify funding sources as bank lending declines.

December 02, 2024
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