NBFCs to outpace banks in loan growth: Nomura
Nomura thinks non-banking financial companies (NBFCs) like Tata Capital, L&T Finance, and Piramal Finance are about to leave traditional banks behind in loan growth over the next 15 years.
It's expecting these NBFCs to see loan growth in the high-teens to over 20% from FY26 to FY28, and to expand faster than banks over the next 15 years.
NBFCs going all-in on AI and digital tools
NBFCs are going all-in on AI and digital tools, using tech to find the right customers through UPI and online data.
For example, L&T Finance's retail loans now make up 98% of its lending after growing at a rapid pace.
Nomura is so confident it has set ambitious price targets for these companies, up to 26% higher than current levels.
The big picture: NBFCs could grab one-third of India's credit market by 2041, especially by filling gaps where banks aren't reaching small businesses or individuals.
What's the bottom line?
If you're interested in how tech is shaking up finance or thinking about where the next big moves in India's money scene might come from, this shift toward smarter, faster lending could be something worth watching, especially as it opens new opportunities for young borrowers and entrepreneurs.