As of financial year 2022, 9500 NBFCs belonged to the non-deposit taking category (NBFC-NDs), based on liabilities. Systemically important non-deposit taking NBFCs (NBFC-ND-SI) are large NBFC-NDs with assets of more than five billion Indian rupees. There was a total of 9680 NBFCs registered with the Reserve Bank of India.
What are NBFCs?
NBFCs are non-banking financial companies that provide banking services without holding a banking license. They engage in the advancement of loans and advances, acquisition of shares, stocks, bonds, savings and investment products, credit facilities and so on. NBFCs do not form part of the payment and settlement system. Investment companies, infrastructure finance, loan companies, asset finance companies are common examples of NBFCs based on activity.
Relevance of NBFCs in Indian landscape
NBFCs facilitate credit to key and niche sectors of the Indian economy ranging from infrastructure to unbanked sections of the society. They play an integral role in the diversification of the Indian financial sector by mobilizing resources and providing loans at payable costs. The sector also brings new credit disbursals into micro, small, and medium enterprises (MSMEs) and contributes largely to the economy by lending to infrastructure projects.
FAQs
How many NBFC are in India? Registered NBFCs with Reserve Bank of India (RBI) in India are nearly 10,000 out of which 89 are deposit accepting NBFC.
Which is India's number 1 NBFC? ›
With the highest credit rating of FAAA/Stable for any NBFC in India, Bajaj Finance has been serving more than 50 million customers at present. Bajaj Finance has been in the market for over 35 years with an established presence at 3,685 places and 150,000 distribution centers.
Who rates NBFCs in India? ›
NBFCs with higher credit ratings usually offer better interest rates. CRISIL and ICRA are the topmost credit rating agencies in India. A higher credit rating indicates the company's financial stability and reliability.
What is the minimum amount for NBFC in India? ›
In terms of Section 45-IA of the RBI Act, 1934, no Non-banking Financial company can commence or carry on business of a non-banking financial institution without a) obtaining a certificate of registration from the Bank and without having a Net Owned Funds of ₹ 25 lakhs (₹ Two crore since April 1999).
What is the size of NBFC market in India? ›
As reported by The Print, 9,500 NBFCs were registered with the RBI in 2022, with a total asset size of Rs 42.05 lakh crore. Also, the assets under management (AUM) of NBFCs was Rs 24.6 lakh crore as of March 2020, Rs 25.1 lakh crore in March 2021, and around Rs 27 lakh crore in March 2022, as per the CRISIL report.
How big is NBFC industry in India? ›
The Non-Banking Financial Company (NBFC) sector in India has undergone remarkable growth, establishing itself as a significant player within the country's financial landscape. As of 2023, the NBFC sector has reached an impressive size of USD 326 billion, underscoring its expanding influence in the financial domain.
Which is the fastest growing NBFC in India? ›
Shriram Finance limited
This NBFC-D and NBFC-ICC offer consumer financing, EMI cards, vehicle loans, and home loans, serving retail SMEs and commercial sectors. With a client base of 73 million and resources ranging around 270,050 crores (US $34 billion), it is one of the fastest-growing NBFCs in India.
Which is the largest NBFC in India? ›
Here are the 10 Top NBFCs in India in 2023
- L&T Finance Holdings Limited. ...
- Cholamandalam Investment and Finance Company Limited. ...
- Muthoot Fincorp. ...
- Reliance Capital. ...
- Shriram Finance Ltd. ...
- Poonawalla Fincorp. ...
- Edelweiss Financial Services. ...
- Mahindra & Mahindra Financial Services Limited.
2. Bajaj Finance Limited. Bajaj Finance Limited (BFL) is a major finance company in India with 73 million customers and assets worth 270,050 crore (US$34 billion).
Is NBFC profitable in India? ›
In the financial year 2023, the non banking financial companies (NBFCs) sector in India reported a net profit of around 597 billion Indian rupees. In the last year, a net profit of 430 billion was reported for the NBFC sector.
List of Safest NBFCs in India
| Sr. No. | Name of the NBFC | Score |
|---|
| 1 | Bajaj Finance Ltd | FAAA |
| 2 | PNB Housing Finance Ltd | FAA+ |
| 3 | Mahindra Finance Ltd | FAAA |
| 4 | Shriram Finance Ltd | AA+ |
2 more rowsThe working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.
What is the average salary in NBFC in India? ›
Average annual salary in NBFC is INR 6.9 lakhs . Salary estimates are based on 990 NBFC latest salaries received from various employees of NBFC.
Is NBFC legal in India? ›
RBI is the sole regulatory authority for NBFCs, State Money Lenders Act does not apply to NBFC – State Money Lenders Act does not apply to NBFCs, as they are solely and entirely regulated by RBI. Section 45Q of RBI Act confers overriding effect upon Chapter III-B of RBI Act, 1934 – Nedumpilli Finance Co Ltd.
How much FDI allowed in NBFC in India? ›
Allowing 100% FDI in NBFC sector is a game-changer for the Indian economy as it helps the sector in growing at a larger scale and helps in making this sector a great contributor to economic growth. Non-Banking finance company contribution is higher than any other sector in the economy growth.
Who is the No 1 finance company in India? ›
List of top 10 Finance Companies in India
| S.No. | Finance Company |
|---|
| 1. | Bajaj Finance Limited |
| 2. | Tata Capital Financial Services Ltd |
| 3. | Aditya Birla Finance Ltd |
| 4. | L & T Finance Limited |
6 more rowsFeb 3, 2022
