Big non-banking lenders in India are gaining trust and growing fast: Fitch Ratings
New Delhi [India], June 19 (ANI): India's non-bank financial institutions (NBFIs) are growing strongly, with large lenders leading the way, says Fitch Ratings.
These institutions offer a wide range of financial services, and their credit ratings depend on how strong and stable their business models and finances are.
According to Fitch, large NBFIs with a proven track record are earning more trust from investors and lenders. This growing confidence is helping them stay ahead of smaller players in the sector.
By the end of September 2024, 17 major NBFIs tracked by Fitch had increased their share of the total loan market to 38 per cent, up from 30 per cent in March 2022. These leading lenders recorded an annual loan growth rate of 20 per cent during this period, much higher than the 9 per cent growth rate of the overall NBFI sector.
These big NBFIs have also become financially stronger. Their debt-to-equity ratio -- a measure of how much they borrow compared to their own funds -- dropped from 4.5 times in 2021 to 4.3 times by mid-financial year 2025.
This improvement came from raising more capital and keeping profits within the business, especially during the COVID-19 pandemic.
Lower debt levels help reduce the risk of financial trouble if loan repayments slow down. Fitch expects this trend to continue, with most NBFIs using their earnings to fund future growth rather than paying out large dividends.
Despite slower global economic growth, India's NBFI sector continues to expand. The sector includes a wide variety of companies offering different types of loans.
In cities, competition is tough for secured loans like home or car loans. But in rural areas, some NBFIs face less competition from banks. However, higher costs and greater credit risks in rural lending can affect profitability, depending on how well the loans are managed.
Fitch also highlights that the type of loans an NBFI focuses on plays a big role in its success. Those with deep experience and large operations in specific segments tend to have more stable and sustainable businesses.
Many NBFIs lend to non-prime customers -- people who may not get easy loans from banks -- which can help them earn higher margins, unless banks enter the same market.
Large NBFIs benefit from their size and strong market position. They usually have better access to funding, more control over pricing, and lower costs.
Those that lead in their lending areas are better able to manage risks and stay profitable, even during economic ups and downs. Companies backed by large corporate groups may also get easier access to funds and benefit from group support.
Fitch says that when it rates NBFIs, it looks at how stable their business is, how much risk they take, how strong their finances are, how easily they can raise money, and how well they follow rules. (ANI)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Hyderabad tops metro cities in traffic speed at 25 kmph; city police, google join hands for signal optimisation under ‘Operation Green Light'
HYDERABAD: The city's average traffic speed of 25 kmph is the highest among major metropolitan cities in India, Hyderabad commissioner of police CV Anand said on Friday. He was speaking at the 'Traffic Action Plan' meeting held at the Telangana Integrated Command and Control Centre, Banjara Hills. "Despite the city adding nearly 1,600 new vehicles to the roads every day, we aim to improve the average speed to 27 kmph," Anand said. "Currently, about 91 lakh vehicles ply on Hyderabad roads daily, which shows a 45% surge since the Covid pandemic. The key to managing this growing volume lies in effective signal management," he added. At the event, Hyderabad city police also signed a memorandum of understanding (MoU) with Google to implement Operation Green Light, a collaborative initiative aimed at optimising traffic signals. "Every time someone uses Google Maps for navigation, data is generated about traffic flow and congestion," a senior police official explained. "With this MoU, we will use that real-time data to manage signal timings better. This will not only help reduce waiting time at signals but also cut down on greenhouse gas emissions," he said. Officials said the system will also help monitor sudden incidents or route deviations, allowing quicker alerts and responses by the traffic police. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Visste du at du enkelt kan forbedre levetiden? Younger You Klikk her Undo Highlighting other traffic management efforts, the city police commissioner said, "We are currently using two drones and 25 high-rise CCTV cameras for surveillance, and more will be added soon." He also lauded the role of transgender assistants deployed at traffic signals, a govt initiative introduced in Dec 2024. Anand assured that the police are also preparing for the upcoming monsoon season with appropriate precautionary measures.
Time of India
3 hours ago
- Time of India
From high stress to headstands: Hyderabad techies quit corporate jobs to become yoga teachers; here's what they say
HYDERABAD: Even as corporate India grapples with whether to work 70 hours a week or not, many young professionals in Hyderabad are making a mid-career shift and becoming full-time yoga instructors. If it means a pay cut, so be it. Those 15-hour workdays packed with PowerPoint presentations, deadlines and unending meetings have finally got to them. TOI spoke to many techies who have swapped high-pressure jobs for the calm, flexible life of full-time yoga. Mrudula Neelam, 31, was a techie with a major corporate and spent nearly four years buried in spreadsheets and regulatory frameworks at a multinational firm. "My body just couldn't take the 14-15 hour work days any more," she says. "I was constantly sick and stressed. The turning point came during 'Wellness Fridays' at her workplace, where she began teaching yoga to colleagues. Already certified, she started taking it more seriously. A scholarship for an Ashtanga immersion course in Bali sealed the deal. "It all shifted from being a weekend side hustle to a full-time career for me." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo Mrudula now runs classes from her online studio, teaches in-person sessions, and even travels to retreats and workshops in other cities. At 25kmph, Hyderabad tops metro cities in traffic speed The city's average traffic speed of 25 kmph is the highest among major metropolitan cities in India, Hyderabad commissioner of police CV Anand said on Friday. He was speaking at the 'Traffic Action Plan' meeting held at the Telangana Integrated Command and Control Centre, Banjara Hills. "Despite the city adding nearly 1,600 new vehicles to the roads every day, we aim to improve the average speed to 27 kmph," Anand said. "Currently, about 91 lakh vehicles ply on Hyderabad roads daily, which shows a 45% surge since the Covid pandemic. The key to managing this growing volume lies in effective signal management," he added. At the event, Hyderabad city police also signed a memorandum of understanding (MoU) with Google to implement Operation Green Light, a collaborative initiative aimed at optimising traffic signals. "Every time someone uses Google Maps for navigation, data is generated about traffic flow and congestion," a senior police official explained. "With this MoU, we will use that real-time data to manage signal timings better. This will not only help reduce waiting time at signals but also cut down on greenhouse gas emissions," he said. Officials said the system will also help monitor sudden incidents or route deviations, allowing quicker alerts and responses by the traffic police. Highlighting other traffic management efforts, the city police commissioner said, "We are currently using two drones and 25 high-rise CCTV cameras for surveillance, and more will be added soon." He also lauded the role of transgender assistants deployed at traffic signals, a govt initiative introduced in Dec 2024. Anand assured that the police are also preparing for the upcoming monsoon season with appropriate precautionary measures.
India Gazette
6 hours ago
- India Gazette
"90s decade proves who misused public money": Chirag Paswan slams RJD
Patna (Bihar) [India], June 20 (ANI): Union Minister Chirag Paswan on Friday slammed RJD leader Tejashwi Yadav and dismissed his claims of state administration 'forcibly' gathering people for Prime Minister Narendra Modi's rally, saying the RJD had no moral ground to speak of public welfare. 'The 90s decade proves who misused the public money. The 90s were a decade in which the people of Bihar had to leave their homes, villages, and businesses and leave Bihar.' He emphasised that under the current administration, there has been a positive shift. 'Gradually, reverse migration has started in Bihar. Around 25 lakh people have returned to Bihar after COVID-19... This is a double-engine government, not a jungle-raj...' Meanwhile, Bihar Deputy Chief Minister Vijay Kumar Sinha hailed PM Modi's visit to Siwan as a momentous occasion. 'It was a very historic way people welcomed and greeted the Prime Minister was tremendous... this is a historic day for the people of Bihar,' said Deputy CM. Apart from this, in a swift rebuttal Bihar Minister Ashok Choudhary also questioned the credibility of Tejashwi's claims, saying, 'Is it Lalu Prasad Yadav's regime that the professors are not getting salaries? Has any government employee claimed that they are not getting their salaries? Tejashwi Yadav should reveal who is providing him with such information... In the upcoming Bihar Assembly elections, Tejashwi Yadav will face a defeat greater than that experienced by Lalu Prasad Yadav.' Notably, PM Modi during his visit to Siwan on Friday flagged off a state-of-the-art locomotive built at the Marhowra Plant, for export to the Republic of Guinea, under the 'Make in India' initiative. The plant became the first export locomotive manufactured in this factory. They are equipped with high-horsepower engines, advanced AC propulsion systems, microprocessor-based control systems, and ergonomic cab designs, incorporating technologies like regenerative braking. PM also flagged off the Vande Bharat Express between Patliputra and Gorakhpur via Muzaffarpur and Bettiah. (ANI)
