Mumbai, India, 05 September 2026: Non-Banking Financial Companies (NBFCs) have become a major gateway to formal credit in India, accounting for nearly half (47%) of New-to-Credit (NTC) consumer originations as of June 2026. Today, 36% of credit-eligible consumers have accessed credit through an NBFC, while 46% of all credit-active consumers hold an NBFC loan, according to Bharat Nirman: NBFC Forming the Foundation of Credit Dispersion, a joint report by the Finance Industry Development Council (FIDC) and TransUnion CIBIL.

NBFCs have grown steadily over the past decade, with their credit-active consumer base expanding nearly sevenfold and their share of retail loan originations rising from 33% to 43%. At the same time, first-time borrowers accounted for a smaller share of NBFC originations, declining from 28% in June 2016 to 16% in June 2026, showing that NBFCs are increasingly serving borrowers who already have a credit history. While NBFCs accounted for 43% of retail loan originations by volume, their share by value stood at 30% in June 2026, reflecting their strong presence in smaller-ticket lending and the opportunity to serve customers across larger and more diverse credit needs. 

Chart 1: Growth in NBFC Credit-Active Consumers and Their Balances

Smaller-Ticket Lending and Deeper Reach Have Helped Build Scale

NBFCs have built a strong presence in smaller-ticket lending. Loans of up to ₹2 lakh account for 82% of consumer credit industry origination volumes, and NBFCs contribute 47% of originations in this segment, compared with 17% for banks. Their reach is also strong beyond large urban centres. Semi-urban and rural (SuRu) markets account for more than 58% of NBFC loans by volume, putting them nearly on par with banks at 60%.

This reach is reflected in the changing composition of the NBFC credit-active consumer base. Between June 2016 and June 2026, the share of consumers from semi-urban and rural markets increased from 31% to 59%. Over the same period, women’s share rose from 18% to 27%, credit-experienced² consumers from 35% to 49%, and younger consumers³ from 44% to 47%, pointing to a broader and increasingly more diverse borrower base. 

Chart 2: Share of NBFC Credit-Active Consumers 

Bhavesh Jain, MD & CEO, TransUnion CIBIL, said: “The NBFC sector has come a long way over the last decade and today plays a much larger role in how credit reaches consumers across India. Its reach now extends well beyond first-time borrowers, with a growing presence among customers who are more experienced with credit and have more varied financial needs. We are also seeing the borrower base become broader across geographies and consumer segments, which reflects how the market itself is maturing. The next phase will be about building deeper and longer relationships with customers as their credit needs evolve over time. Credit information, stronger consumer awareness and a wider range of lending solutions will become increasingly important in making those relationships more meaningful. As this evolution continues, NBFCs will remain an important part of expanding access, improving credit outcomes and supporting sustainable growth across India’s credit ecosystem.” 

Borrower Credit Needs Are Becoming More Diverse

As NBFCs reach a wider set of borrowers, the mix of credit products consumers use is changing too. Consumption credit increased from 51% of NBFC credit-active consumer wallets in June 2016 to 62% in June 2026, while business-oriented credit rose from 4% to 11%. Over the same period, vehicle credit as a composition of NBFC consumer’s wallet declined from 27% to 24% and mortgage credit from 10% to 7%.

Among NBFC NTC consumers who entered formal credit during the six months ended June 2024 and still had a live loan in June 2026, 74% remained exclusively with NBFCs, showing that many first-time borrowers continue their relationship with the sector over time.

NBFC Growth Has Come With Improving Portfolio Quality 

NBFCs have continued to serve below prime¹ consumers while increasing their presence among prime and above prime borrowers. Between June 2019 and June 2026, the share of above prime consumers rose from 24% to 32%, while 90+ days balance-level delinquency declined from 2.7% to 1.1%.

Credit awareness also strengthened, with the share of NBFC consumers monitoring their credit rising from 3% in June 2018 to 48% in June 2026. Credit-monitoring consumers also showed better repayment recovery, with 52% of previously delinquent accounts returning to regular repayment within 12 months, compared with 48% among similar non-monitoring consumers.

Raman Aggarwal, CEO, FIDC, said: “The NBFC sector today is far more deeply embedded in India’s credit system than it was a decade ago. Its strength has always been the ability to respond to markets that require flexibility, whether that is a household in a smaller town, a first-time borrower or a small business looking for capital. We are now seeing that capability translate into greater scale across emerging states and a stronger presence among nano and micro enterprises.

“That same reach is increasingly visible on the enterprise side, where NBFCs are serving a wider range of businesses and building a stronger presence among more established borrowers,” he added. “This is a more mature NBFC  sector, with a larger role in financing enterprise , economic activity and consumption across India. As the country’s credit requirements grow, the sector’s ability to combine reach, innovation and responsible lending will remain central to its contribution to the economy. This is where FIDC as the SRO shall play a vital role

Commercial Lending Is Emerging as Another Area of NBFC Growth 

NBFCs are also expanding their presence in commercial lending. Their share of credit-active commercial entities increased from 10% in June 2021 to 18% in June 2026, with NBFC-served entities growing 2.2 times compared with 1.2 times growth in the overall commercial lending market. This expansion is visible across key borrower segments, with the share of partnership and proprietorship entities among credit active entities serviced by NBFCs increased from 73% to 82%, while low-risk⁵ commercial entities increased from 14% to 51%. The growing focus on lower-risk businesses points to NBFCs strengthening their position beyond traditionally underserved segments and into mainstream commercial lending.

Chart 3: Share of NBFC Credit-Active Entities 

The Next Opportunity Lies in Deeper Relationships and Broader Product Participation

First-time borrower growth is beginning to moderate, placing greater focus on how NBFCs engage customers beyond their entry into formal credit. The opportunity ahead lies in staying relevant through more stages of the credit journey as borrower needs broaden and credit profiles mature.

Deeper relationships, greater credit awareness and a wider range of lending solutions can support that progression. The sector’s growing reach across consumers, geographies and businesses places NBFCs at the centre of the next phase of credit expansion, with a continuing role in widening access, supporting enterprise and contributing to inclusive growth.

¹ Updated score ranges for Enhanced CreditVision score are: Subprime = 300-670; Near prime = 671-730; Prime = 731-800; Prime plus = 801-850; Super prime = 851-900

² Credit Experienced are consumers who have been in the retail bureau for more than 5 years

³ Younger Consumers are aged less than 35 years

⁴ Credit-monitoring consumers are consumers who monitored their credit with TransUnion CIBIL in last one year from period end

⁵ Low Risk – CIBIL Commercial Rank (1-3)

About FIDC 

Finance Industry Development Council (FIDC) has been the voice and face of the NBFC sector for the last 22 years. In October last year, RBI recognised FIDC as the Self Regulatory Organization (SRO) for NBFCs and HFCs in India. Since then, FIDC has expanded its membership base across the country covering the Upper Layer, Middle Layer and Base Layer NBFCs. We have been working to enhance the compliance culture among NBFCs especially the Base Layer NBFCs. FIDC has taken several Capacity Building initiatives for the NBFC Sector that include effectively engaging with important stakeholders like IFC (The World Bank Group), TransUnion CIBIL, NSE-IX (GIFT City), IIBF.  Further, with the objective of Upskiling, we have engaged with leading academic institutions like IIM Nagpur and Gokhale Institute of Politics & Economics. We continue to represent Key matters relating to regulation and working of NBFCs before the Regulator and the Policymakers.

Customers who maintain a fixed deposit with SBI can apply for a secured Advantage SBI Card through a 100% paperless digital process on SBI YONO. According to SBI Card, the application can be completed in around 10 minutes, making the process more convenient for customers seeking access to a secured credit card. The offering combines the security of a fixed deposit with the features and convenience associated with credit card spending.

SBI Card has launched the secured Advantage SBI Card on SBI YONO, enabling customers with an SBI fixed deposit to apply for a secured credit card through a 100% digital and paperless process. The card can be availed in around 10 minutes, with four SBI Card variants available through the YONO platform.

The Ministry said that this step has been taken in view of the proposed three-day nationwide bank strike called by the United Forum of Bank Unions (UFBU) from 28th to 30th of this month, coinciding with the preceding weekend holidays of 26th and 27th September. It said that the Reserve Bank of India has granted approval for all bank branches, offices, ATM-link branches and Currency Chests to remain fully operational on Sunday. The Ministry said that the Government and bank managements have appealed to unions to defer the proposed strike, and have also taken measures to ensure that essential banking services continue un-interrupted.

Under the revised framework, a 0.4% MDR will apply to specified Person-to-Merchant (P2M) UPI transactions above ₹2,000, subject to a cap of ₹300 for transactions of ₹75,000 and above. The government said around 96% of P2M UPI transactions will remain unaffected, while Person-to-Person (P2P) transactions will continue to be free. MDR will be distributed among participants such as banks, payment service providers and UPI app providers.

Mumbai, 7th September 2026: This Teacher’s Day, Aditya Birla Sun Life Mutual Fund (ABSLMF), in collaboration with creative partner AGENCY09, goes beyond conventional messages of gratitude to ask a simple question,”While we remember our teachers, do we remember the lessons they taught us?”

Built on this insight, the campaign titled ‘The Comeback Morcha’ crafted using AI brings familiar classroom objects – chalks, calculators, rulers, protractors, markers and the blackboard – to life. Together, they stage a playful morcha (rally), reminding adults of the lessons they once represented: solving problems, finding direction, planning ahead, identifying what matters and moving forward step by step.

As the film unfolds from the classroom to adulthood, these lessons take on a new meaning. Planning ahead becomes planning for financial goals and discipline indicates  staying consistent with SIPs.

Through ‘The Comeback Morcha’, ABSLMF turns Teacher’s Day into more than a moment of remembrance. The campaign reminds investors that some of the most valuable lessons our teachers gave us can continue to guide the decisions we make as adults – including the way we plan, invest and work towards our financial future.

The film is currently live across digital platforms.

Film Link: https://youtu.be/qjyZ9vTtEt8

Srinagar, Aug 17: Reinforcing its customer-centric approach to expand access to financial protection, J&K Bank has entered into a Corporate Agency Agreement (CAA) with HDFC Life – one of India’s leading life insurance companies. The strategic partnership will enable the Bank’s customers to access HDFC Life’s comprehensive suite of products designed for various life stages, ranging from Protection, Savings and Investment, Retirement Planning, etc.

The partnership was formally announced in the presence of the Bank’s MD & CEO Amitava Chatterjee, HDFC Life’s MD & CEO Vibha Padalkar, Executive Director & Chief Business Officer Vineet Arora, Chief Operating Officer Sameer Yogishwar, Chief Bancassurance Officer Lavneesh Gupta, Group Head – Strategic & Key Alliances Anita Peshkar, SVP Bancassurance Subrata Biswas and VP Strategic Alliances Rohit Khatri. The Bank’s Executive Director Sudhir Gupta, alongside Chief General Managers Sunit Kumar, Imtiyaz Ahmad and Rajesh Malla Tikoo, General Manager Anita Nehru, and other senior officials from both organizations were also present on the occasion.

Commenting on the collaboration, the Bank’s MD & CEO Amitava Chatterjee said, “At J&K Bank, customer centricity means enabling our customers to make informed financial choices from a diverse range of credible and competitive solutions. The addition of HDFC Life to our growing portfolio of insurance partners significantly widens that choice and strengthens our ability to offer need-based protection and long-term financial solutions suited to different life stages and aspirations.”

Highlighting the strategic rationale behind the Bank’s expanding insurance ecosystem, he added, “We believe that greater choice creates greater value. By bringing multiple reputed insurers onto our platform, we seek to create a competitive marketplace that benefits customers through product diversity, competitive pricing and greater flexibility in choosing solutions best aligned with their individual requirements.”

MD & CEO further added that expanding the reach of insurance through Bank’s extensive distribution network across the country complements the larger national objective of deepening insurance penetration and contributes to IRDAI’s vision of ‘Insurance for All by 2047’.

Speaking on the partnership, MD & CEO, HDFC Life, Vibha Padalkar said, “Life insurance is an important pillar of long-term financial resilience. It offers families the confidence that their financial aspirations can remain protected even in the face of uncertainties. We are delighted to enter this strategic partnership with J&K Bank and offer our simple insurance solutions comprising of individual and group insurance plans backed by tech-empowered services to ensure customers can fulfil their goals with peace and pride. Our partnership reflects our strong commitment to serving customers across the country.”

With HDFC Life joining its existing panel of insurance partners, J&K Bank continues to strengthen its bancassurance proposition by offering customers access to products from multiple leading insurers.

The bank’s multi-partner approach is designed to provide greater choice and facilitate need-based selection rather than a one-size-fits-all offering, while enhancing the overall value proposition available through the Bank’s distribution network.

Strong Profitability with ₹184 Crore PAT in Q1FY27 vs. a loss of ₹224 Crore in Q1FY26

ROA and ROE for Q1FY27 at 1.18% and 11.76% respectively

Gross Advances grew by 27% YoY and 3% QoQ

Overall Disbursements at ₹6,784 Crs, growth of 93% YoY

Deposits grew by 10% YoY & 5% QoQ, CASA at 25% 

1. Key Highlights:

• Gross advances grew by 27% YoY and 3% QoQ supported by robust disbursements across verticals. Non MFI book grew 22% YoY, led by 24% growth in HF, 28% in MSE and 179% in Gold Loan over previous year.
• Overall deposits grew by 10% YoY & 5% QoQ. 

2. Business Highlights:

• Overall Disbursements at ₹6,784 Crore in Q1FY27, a growth of 93% YoY and a decline of 8% QoQ
• Our Flagship Product Small Business Loans (SBL) grew by 15% YoY. BL advances, a part of SBL, has grown 32% YoY contributing 34% of the overall SBL portfolio.
• Used Car and Used CV Advances have registered a growth of 30% YoY and 25% YoY respectively.
• CASA ratio at 25%.
• Cost of Funds increased by 11 bps to 7.05% in Q1FY27 from 6.94% in Q4FY26     

1. Key Ratios:

• NIM for the quarter stood at 7.24%, marginally declined by ~12 bps QoQ
• Cost to Income ratio stood at 68.38% in Q1FY27 as compared to 67.52% in Q4FY26 and 70.62% in Q1FY26

1. Capital:

• Networth of the Bank stands at ₹6,367 Crore
• As of June 30, 2026, Total CRAR at 19.44% | Tier I at 16.01% and Tier II at 3.43%      

1. Treasury & Liquidity:

• The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from India Ratings, CareEdge Ratings & CRISIL
• Liquidity Coverage Ratio (LCR) as on 30.06.2026 is 178.46%
• Other Income: Income from Investments (including MTM & dividend) for the quarter is ₹31 Crore

3. Profit & Loss:

• Net Income for Q1FY27 grew by 19% YoY and 3% QoQ and Total Opex grew by 16% YoY and 5% QoQ
• The bank reported a quarterly PAT of ₹184 Crore, compared to a loss of ₹224 Crore in Q1FY26.

4. Asset Quality & Provisions:

• GNPA reduced by 13 bps QoQ at 2.36% in Q1FY27 as compared to 2.49% in Q4FY26; including securitization book, GNPA would stand at 2.31%
• NNPA increased by 2 bps QoQ to 0.70% in Q1FY27 as compared to 0.68% in Q4FY26
• PCR remains stable at 71.02% (86.96% Including technical write-offs)
• Net Slippages at 1.43% in Q1FY27, the second-lowest among first quarters over the last five years.
• Credit Cost declined significantly to 1.37% in Q1FY27 as compared to 6.48% in Q1FY26.

Note: For the calculation of GNPA and NNPA ratios, Gross Advances include IBPC exposures and exclude advances sold through Securitisation and Direct Assignment transactions.

New Delhi, July 24, 2026: Central bankers, regulators and industry leaders from India, Sri Lanka and Nepal converged at Le Meridien, New Delhi, for the 4th ICC Emerging Asia Banking Conclave 2026, organised by the Indian Chamber of Commerce (ICC) under the theme “Reimagining Banking in the Age of Disruption.” The session brought together policymakers and senior bankers from across the BIMSTEC region to examine how financial institutions can balance rapid technological transformation with operational resilience and financial inclusion.

Delivering the welcome address, Mr Atanu Sen, Chairman of the ICC National Expert Committee on BFSI and a board member of Tata and Bandhan Group companies, said trust remains the foundation of banking even as technology reshapes the sector. “What we do in banking remains the same. I recall a conversation years ago in Mumbai where the question was asked: what is the crux of banking? The answer was building trust. If you cannot build trust with all stakeholders, you are a failure. Today we are navigating technological innovation, geopolitical uncertainty, climate risk and cyber threats simultaneously, and disruption has become the new normal. Yet according to the World Bank, nearly 80 percent of adults in South Asia now own a financial account, and digital merchant payments in developing economies have risen from 35 percent in 2021 to 42 percent in 2025. India’s banking sector recorded 12 percent deposit growth and 15 percent growth in advances in FY26, supported by over 200 digital banking units and a UPI infrastructure that processed around Rs 230 lakh crore, roughly 2.7 trillion US dollars, in FY25-26,” he said.

Shri K G P Sirikumara, Deputy Governor, Central Bank of Sri Lanka, spoke on building resilient financial systems while balancing growth, prudence and inclusion. “Emerging Asia contributes around 60 percent of global growth, but the same forces driving that growth are reshaping financial risk. A crisis today may not begin inside a financial institution at all; it could originate from a cyber attack, a climate event or a disruption to cloud infrastructure. Resilience is not merely the ability to recover, it is the ability to continue performing essential financial functions while under stress. Sri Lanka’s own experience during its recent economic crisis showed how a banking sector built on caution and early preparedness can avoid a parallel financial collapse. Financial inclusion and prudence are not competing objectives; a broader deposit base strengthens funding stability, and access to formal finance improves household resilience. Governance, not capital alone, is what separates resilient institutions from vulnerable ones. As Vidura advised in the Mahabharata, one should prepare for danger while there is still no danger, and that principle remains the essence of modern financial supervision,” he said.

Mr Hem Prasad Neupane, Executive Director, Banking Department, Nepal Rashtra Bank, outlined Nepal’s digital banking transformation. “Nepal is a 44 billion US dollar economy with real GDP growth estimated at 3.85 percent in FY 2025-26 and inflation at 2.13 percent. We have 106 licensed banks and financial institutions operating over 11,300 branches nationwide. The number of digital wallets has grown from 6 million before the pandemic to more than 27 million today, and mobile banking users have risen from 8 million to over 30 million. QR-based payments worth around Rs 800 billion, close to 12 percent of our GDP, took place last year alone, a sixfold increase over five years, and more than 95 percent of government payments in Nepal are now conducted digitally. Our financial inclusion index has risen from 0.40 in 2021 to 0.53 in 2025. We are also integrating our national payment interface with India’s UPI, and the service is already active for Indian visitors scanning QR codes in Nepal. Nepal Rashtra Bank is piloting a central bank digital currency this year, with full rollout planned by 2027,” he said.

Ms Gayathri Parthasarathy, Advisor to Chairman, PwC India, framed the discussion around three pillars: the disruptions underway, the transformation already in motion, and the challenges ahead. “Reimagining banking in the age of disruption is not a slogan, it is hard work, and it is not glamorous. The first disruption is digital public infrastructure, where India has been a trendsetter and our neighbours Nepal and Sri Lanka have also made remarkable progress. The second is the fintech platform economy; banking is increasingly embedded finance rather than something separate from the banking fabric. The third, and one that is here to stay for decades, is generative and agentic AI, which is moving well beyond fraud detection into making banking transactions more efficient, though it will not replace a trained banker for a long time. Regulatory and geopolitical shifts continue, and demographic and behavioural change among customers is a disruption we cannot underestimate. Banks are already moving from product-centric to platform-centric models, and risk and compliance, powered by data and AI, have become a CEO-level agenda. Cybersecurity, data protection and building hybrid bankers, professionals who combine technology with banking judgement, will decide how smoothly the region crosses this transition,” she said.

Closing the session, Dr Rajeev Singh, Director General, Indian Chamber of Commerce, noted the unprecedented pace of global economic change and its bearing on the banking sector. “The changes we have seen in the last six years are unprecedented. Globally there is hardly any certainty about which way the world will go, supply chains are being disturbed and new alliances are forming. Banking has to keep pace with all of this while maintaining its core values of trust, efficiency and dependability,” he said.

The conclave, now in its fourth edition, continues ICC’s tradition of bringing together central bankers, regulators and financial sector leaders from the BIMSTEC region to discuss the future of banking amid rapid digital transformation.