New Delhi: Assets under management (AUM) of non‑banking financial companies (NBFCs) in India will grow at a steady pace of 18-19 per cent this fiscal and FY27, to cross Rs 50 lakh crore by March 2027, a report projected on Monday.
The report from ratings agency Crisil Ratings said that growth will be driven by whetted consumption, and supportive policy moves such as GST rationalisation, coupled with benign inflation.
These factors will drive retail credit demand, the firm said. However, risk calibration and funding access dynamics will impact growth outlooks differently across entities and asset segments.
“Vehicle finance and home loans will see steady growth amid intensifying competition. However, exercising due caution on heightened customer leverage, NBFCs will adopt risk-calibrated growth especially in the micro, medium and small enterprises (MSME) and unsecured loan segments,” said Krishnan Sitaraman, Chief Ratings Officer, Crisil Ratings.
The firm made segment forecasts, such as vehicle finance (about 22 per cent of NBFC AUM) to grow 16-17 per cent, and home loans (about 22 per cent) expanding 12-13 per cent over two fiscals.
Apart from the boost from GST, which is set to continue, increasing preference for premium vehicles among buyers and focus on used-vehicle financing will support AUM growth in the segment even though competition with banks remains strong in new vehicles.
While the long-term demand for end-user housing remains strong, growth will be impacted by stiff competition from public sector banks, the report said.
Personal loans (about 11 per cent of AUM) are expected to improve to 22–25 per cent growth after regulatory recalibration, while growth in unsecured MSME business loans (about 6 per cent) may slow to 13–14 per cent amid rising delinquencies, the report added.
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