The Indian financial sector landscape has changed materially over the past few years with non-banking finance companies (NBFCs) piloting credit growth with low delinquencies, even as banks grapple with staggering asset-quality issues. NBFC business models have also evolved and we have seen rapid growth in multiple segments while maintaining asset quality. Truly, NBFCs have moved out of the shadows of the big banks. However, for them, the lure of a banking licence remains strong.
