Non-banking Financial Companies (NBFC) sector in India has undergone a significant transformation over the past few years and plays a significant role in the growth of the Indian financial system.
It is expected for NBFCs to sustain their growth momentum and asset quality performance in Q2FY19. NBFCs are expected to report a 30 per cent growth in second-quarter profit.According to SIDBI, share of NBFCs in MSME financing has risen to 11.3 percent as of mid-2018 against 8.4 percent two years prior, leading to lower market share of public sector banks to 51 percent in June 2018 against 60 percent two years ago.
NBFC’s have outperformed banks in the Mortgage Industry, by leveraging technology with the help of latest tools like CyberSecurity, BigData management, AI & Machine learning etc…Technology has made NBFC’s expand into underserved segments. NBFC’s have carved niche business areas for themselves by understanding customers & building customized products.