INDUSTRIES & MARKETS

Non-banking financial
companies in India
 Table of Contents

01 Overview 04 NBFCs and financial inclusion

Annual growth of loans in India FY 2019-2022, by financial institution 03 Annual credit growth of MSMEs in India FY 2017-2023 22
Number of NBFCs in India 2021, by category 04 Market share of lenders for MSME India 2019-2021, by lender type 23
Number of registrations and cancellations of NBFC licenses India FY 2015-2021 05 Number of microfinance institutions India 2022, by city 24
Loan deployment value of NBFCs and HFCs India FY 2010-2021 06 Value of approved guarantees within CGTMSE fund India FY 2021, by category 25
Distribution of NBFC credit FY 2021, by institution 07 Share of digitally disbursed NBFCs loans in India FY 2017-2021 26
NBFC credit deployment India FY 2021, by sector 08

02 Key figures
NBFC credit to GDP ratio in India FY 2013-2021 10
Return on assets of NBFCs India FY 2018-2021 11
GNPA ratio of NBFCs in India 2022, by sector 12
Net interest margin of NBFCs India FY 2018-2021 13
Net profit of NBFCs in India FY 2020-2022 14

03 Major players
Leading NBFCs in India 2022, by market capitalization 16
Return on assets Bajaj Finance Limited FY 2018-2022 17
Return on total assets Cholamandalam Investment and Finance FY 2018-2022 18
Profit after tax Bajaj Finance Limited FY 2018-2022 19
Profit after tax of Cholamandalam Investment and Finance FY 2018-2022 20

1
CHAPTER 01

Overview
 Annual growth of loans in India from financial year 2019 to 2022, by
financial institution
Annual growth of loans in India FY 2019-2022, by financial institution

Banks NBFCs
16%
14.3%
14% 13%

12%
10.6% 10.3%
Year on year growth

10%

8% 7.6%
6.3%
6% 5.4%
4.6%
4%

2%

0%
FY 2019 FY 2020 FY 2021 FY 2022

3 Description: During the financial year 2022, year on year growth rate of both banks and NBFCs increased to 13 percent and 10.3 percent respectively. In the last two financial years, NBFCs' loan advances remained less than banks. Read more
Note(s): India; FY 2019 to FY 2022
Source(s): BCG India; Capitaline
 Number of registered non-banking financial companies (NBFC) in India as
of December 2021, by category
Number of NBFCs in India 2021, by category

12,000

10,000 9,680
9,188

8,000
Number of NBFCs

6,000

4,000

2,000

312 100 52 28
0
Other non-deposit taking Systemically important Housing finance Deposit-taking NBFCs Asset reconstruction Total
NBFCs (NBFC-ND) non-deposit taking companies (NBFC-D) company (ARC)
NBFCs (NBFC-ND-SI)
NBFC category

4 Description: 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. Read more
Note(s): India; as of December 2021; NBFCs regulated by RBI
Source(s): Reserve Bank of India
 Number of registrations and cancellations of non banking financial
company (NBFC) licenses in India from financial year 2015 to 2021
Number of registrations and cancellations of NBFC licenses India FY 2015-2021

Registrations Cancellations
2,000
1,851
1,800
Number of registrations and cancellations

1,600

1,400

1,200

1,000

800

600

400 298
215 210 224
169 166
200 105 125 116
28 46 55 44
0
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

5 Description: During the financial year 2021, the number of non banking financial company (NBFC) license registrations and cancellations in India stood at 55 and 44 respectively. The financial year 2019 recorded the highest number of license cancellations or
surrenders since 2015. RBI's guidelines for NBFCs allow a minimum net owned fund (NOF) of 20 million to operate. Read more
Note(s): India; FY 2015 to FY 2021; provisional data
Source(s): Reserve Bank of India
 Value of credit deployed by non-banking financial companies (NBFCs) and housing
finance companies (HFCs) from financial year 2010 to 2021 (in trillion Indian rupees)
Loan deployment value of NBFCs and HFCs India FY 2010-2021

NBFCs HFCs
30
26.98
24.6
25
22.8
Value in trillion Indian rupees

19.6
20

14.8
15 13.2
12.2 12.77
11.63 11.83
10.9 10.4
9.3
10 8.2
7.7
6.8
6 5.6
4.6 4.6
5 3.9
2.5 3
2

0
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

6 Description: In financial year 2021, non-banking financial companies (NBFCs) have deployed over 26 trillion Indian rupees in credit value across India. A significant and consistent increase in the loan deployment value was seen over the years in NBFCs and HFCs. Read
more
Note(s): India; FY 2010 to FY 2021
Source(s): EY; FICCI
 Distribution of non banking financial company (NBFC) credit in India in the
financial year 2021, by institution
Distribution of NBFC credit FY 2021, by institution

60%

52.9%

50%
43.3%

40%
Share of credit

30%

20%

10%

2.5%
1.2%
0%
Investment and credit company (ICC) Infrastructure finance company (IFC) Microfinance institutions (NBFC-MFI) Others

7 Description: At the end of the financial year 2021 in India, investment and credit companies (ICCs) and infrastructure finance companies (IFCs) comprised 96.2 percent of the total credit share extended by NBFCs. The growth of two other categories viz., IFCs and
microfinance institutions (NBFC-MFI) resulted in the fall of the share of ICCs. Read more
Note(s): India; FY 2021; NBFCs by activity
Source(s): Reserve Bank of India
 Credit deployment by non-banking financial companies (NBFCs) in India in
financial year 2021, by sector (in billion Indian rupees)
NBFC credit deployment India FY 2021, by sector

Financial credits in billion Indian rupees

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Large scale industries

Other non-food credit
Vehicle loans
Others
Advance to individuals against gold
Commercial and real estate services
Micro finance loan/SHG loan
Micro and small industries
Agriculture and allied activities
Retail trade
Housing loans
Consumer durables
Medium sized industries
Food

8 Description: In financial year 2021, Industries remained the largest recipient of credit from the NBFC sector. This was followed by the services industry and the retail sector. Compared to the previous fiscal year, the overall credit extended to the different sectors rose
by 9.7 percent Read more
Note(s): India; FY 2021
Source(s): Reserve Bank of India
CHAPTER 02

Key figures
 Non banking financial companies (NBFCs) credit to GDP ratio from
financial year 2013 to 2021
NBFC credit to GDP ratio in India FY 2013-2021

16%

13.7%
14%
12.2% 12.1%
12% 11.5%
NBFC credit to GDP ratio

10% 9.6% 9.6%

8.6% 8.8% 8.9%

8%

6%

4%

2%

0%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

10 Description: The NBFC credit to GDP ratio in India has consistently risen and stood at 13.7 percent in the financial year 2021. In the previous financial year it was around 12 percent. Credit intensity of NBFCs is measured by credit to GDP ratio. Read more
Note(s): India
Source(s): Ministry of Finance (India)
 Return on assets of non-banking finance companies (NBFCs) across India
from financial year 2018 to 2021
Return on assets of NBFCs India FY 2018-2021

6%
5.4% 5.3%

5%

4%
Return on assets

3%

2%
1.6% 1.5%

1%

0%
FY 2018 FY 2019 FY 2020 FY 2021

11 Description: In financial year 2021, the return on assets of Non-Banking Finance Companies was over five percent in India. This was a significant increase from the value in financial year 2018 of about 1.6 percent. Read more
Note(s): India; FY 2018 to FY 2021
Source(s): EY; FICCI
 Gross non-performing assets (GNPA) ratio of non-banking financial
companies (NBFC) in India from March 2020 to June 2022, by sector
GNPA ratio of NBFCs in India 2022, by sector

Services Industry Agriculture and allied activities

35%

30%

25% 11.5%

6.2% 9.6% 6.7%

GNPA ratio

20% 8.6%
6.7%

15% 7.9%
7.4% 7.8%
6.7% 6.2%
7.3%
10%

5% 10.3% 9.7% 11% 9.9%

8.5% 9.4%

0%
March 2020 June 2020 September 2020 December 2020 September 2021 March 2022

12 Description: As of March 2022, India's non-banking financial companies (NBFCs) reported the highest gross non-performing assets (GNPA) ratio of 9.9 percent within the services sector, a decline from 11 percent in September 2021. The sector was followed industry
sector with GNPA ratio at 7.8 percent. The total GNPA ratio of NBFCs eased in March 2022 at 6.2 percent from 6.8 percent in September 2021. Read more
Note(s): India; March 2020 to June 2022
Source(s): Reserve Bank of India
 Net interest margin of non-banking finance companies across India from
financial year 2018 to 2021
Net interest margin of NBFCs India FY 2018-2021

7%

6%
6% 5.7% 5.7%

5.1%
5%
Net interest margin

4%

3%

2%

1%

0%
FY 2018 FY 2019 FY 2020 FY 2021

13 Description: In financial year 2021, the net interest margin of non-banking finance companies was over five percent in India. Whereas, the interest margin of Indian banks was only around 2.7 percent in financial year 2019. Net interest margin is the interest earned by
a bank on loans and the interest it pays on deposits. Read more
Note(s): India; FY 2018 to FY 2021
Source(s): EY; FICCI
 Net profit of NBFCs from financial year 2017 to the first quarter of
financial year 2022 (in billion Indian rupees)
Net profit of NBFCs in India FY 2020-2022

500
447.23
450

386 391.71
400
Net profit in billion Indian rupees

350
314
289.92
300

250

200 171.06

150

100

50

0
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 H1 FY 2022

14 Description: In the first quarter of financial year 2022, the non banking financial companies (NBFCs) sector in India reported a net profit of around 290 billion Indian rupees. In the last year, a net profit of 447 billion was reported by the Reserve Bank of India for the
NBFC sector. Read more
Note(s): India; FY 2017 to H1 FY 2022
Source(s): Reserve Bank of India
CHAPTER 03

Major players
 Leading non-banking financial companies (NBFCs) in India as of August
2022, by market capitalization (in billion Indian rupees)
Leading NBFCs in India 2022, by market capitalization

in billion Indian rupees

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Bajaj Finance 4,300.48

Chola Investment 636.87

Bajaj Holdings 600.84

Muthoot Finance 418

Shriram Transport 355.18

Indian Railways Finance Corporation 273.79

Mahindra nd Mahindra Financial Services 235.68

Sundaram Finance 222.25

Poonawalla Finance 209.83

Larson and Toubro Finance 180.38

16 Description: As of August 2022, Bajaj Finance was the leading non-banking financial company in India with market capitalization (at BSE) of around 4300 billion Indian rupees. Chola Investment and Finance Company followed with market capitalization of around 636
billion Indian rupees. Read more
Note(s): India; as of August 2022; market capitalization at BSE
Source(s): BSE (India); Moneycontrol
 Return on assets (ROA) of Bajaj Finance Limited from financial year 2018
to 2022
Return on assets Bajaj Finance Limited FY 2018-2022

4.5%
4.2% 4.2%
4.1%
4.0%
3.7%

3.5%
3.1%
3.0%

2.5%
ROA

2.0%

1.5%

1.0%

0.5%

0.0%
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

17 Description: Bajaj Finance Limited, an Indian non-banking financial company and a subsidiary of Bajaj Finserv, had a return on assets (ROA) ratio of around four percent in the financial year 2022. This was an increase from last year's ROA of around three percent.
Return on assets is an indicator of profitability of a company in relation to its total assets. Read more
Note(s): FY 2018 to FY 2022
Source(s): Bajaj Finance
 Return on total assets (ROTA) for Cholamandalam Investment and Finance
from financial year 2018 to 2022
Return on total assets Cholamandalam Investment and Finance FY 2018-2022

3.5%

3.0% 2.9%

2.5% 2.4% 2.4%

2.2%

2.0% 1.8%
ROTA

1.5%

1.0%

0.5%

0.0%
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

18 Description: Cholamandalam Investment and Finance Company had around three percent return on total assets at the end of Indian financial year 2022, a 13 percent increase from the previous year. In the year 2021, the return on total assets was around two percent.
Return on assets is an indicator of profitability of a company in relation to its total assets. Read more
Note(s): India; FY 2018 to FY 2022; profit after tax
Source(s): Cholamandalam Investment and Finance Company
 Profit after tax (PAT) of Bajaj Finance Limited from financial year 2018 to
2022 (in billion Indian rupees)
Profit after tax Bajaj Finance Limited FY 2018-2022

80

70.28
70

60
PAT in billion Indian rupees

52.64
50
44.2
39.95
40

30
24.96

20

10

0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

19 Description: Bajaj Finance Limited, an Indian non-banking financial company and a subsidiary of Bajaj Finserv, earned a profit after tax of around 70 billion Indian rupees in the financial year 2022. This was an increase from last year's PAT of around 44 billion rupees.
Read more
Note(s): India; FY 2018 to FY 2022
Source(s): Bajaj Finance
 Profit after tax (PAT) of Cholamandalam Investment and Finance from
financial year 2018 to 2022 (in billion Indian rupees)
Profit after tax of Cholamandalam Investment and Finance FY 2018-2022

25

21.47

20
in billion Indian rupees

15.15
15

11.86
10.52
10 9.18

0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

20 Description: Cholamandalam Investment and Finance Company, an Indian financial services provider, earned a profit after tax of around 21 billion Indian rupees at the end of financial year 2022. This was an increase from previous year's profit of around 15 billion
rupees. Read more
Note(s): India; FY 2018 to FY 2022
Source(s): Cholamandalam Investment and Finance Company
CHAPTER 04

NBFCs and financial inclusion

 Annual credit growth of micro, small, and medium enterprises (MSMEs) in India
from financial year 2017 to 2021, with estimates up till for financial year 2023
Annual credit growth of MSMEs in India FY 2017-2023

14%
13%
12%
12%

10% 10%
10%
Year-on-year growth

8%
7%
6%
6%

4%
3%

2%

0%
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022* FY 2023*

22 Description: The financial year 2022 is estimated to show more than doubled credit growth of 13 percent for micro, small, and medium enterprises (MSMEs) as compared to 2021. However, the projections for the year 2023 show a decline in credit growth of MSMEs by
10 percent over the previous year. Read more
Note(s): India; FY 2017 to FY 2021; *Estimated values Read more
Source(s): BCG India; Crisil
 Market share of credit lenders for micro, small, and medium enterprises
(MSME) in India from December 2020 to December 2021, by lender type
Market share of lenders for MSME India 2019-2021, by lender type

Banks Non banking financial companies-Micro financial institutions (NBFC-MFIs)

Small finance banks (SFBs) Non banking financial companies (NBFCs)
Not for Profit MFIs
50%
44% 43%
45% 42% 41% 40%
40%
35% 36%
35% 32% 32% 33%
Market share

30%

25%

20% 17% 17%

15% 16% 16%
15%

10% 8% 8% 7% 7% 6%
5%
1% 1% 1% 1% 1%
0%
December 2020 March 2021 June 2021 September 2021 December 2021

23 Description: As of December 2021, banks in India had a market share of 40 percent in lending to micro, small, and medium enterprises (MSME). NBFC-micro financial institutions followed closely with 36 percent in market share. Read more
Note(s): India; December 2020 to December 2021
Source(s): SIDBI; TransUnion CIBIL Limited
 Number of microfinance non-banking financial companies (NBFC-MFI) in
India as of January 2022, by city
Number of microfinance institutions India 2022, by city

Number of companies
0 2 4 6 8 10 12 14 16 18 20

Chennai 18

New Delhi 15

Mumbai 14

Kolkata 11

Bengaluru 10

Guwahati 7

Ahmedabad 5
City

Bhubaneshwar 4

Kanpur 4

Hyderabad 3

Jaipur 2

Chandigarh 1

Bhopal 1

Patna 1

Thiruvananthapuram 1

24 Description: As of January 2022, the Reserve Bank of India (RBI) had registered 97 non-banking financial companies (NBFC) to run microfinance institutions (MFI). Chennai, New Delhi, and Mumbai had been the cities with the most NBFC-MFIs. Read more
Note(s): India; as of January 31, 2022
Source(s): Reserve Bank of India
 Value of approved guarantees within Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) in India in financial year 2021, by category (in billion Indian rupees)
Value of approved guarantees within CGTMSE fund India FY 2021, by category

Gurantee value in billion Indian rupees

0 50 100 150 200 250

Public banks 223.89

NBFC 81.86

Private banks 52.34

Foreign banks 3.84

Scheduled urban co-operative banks 2.41

Regional rural banks 2.13

Financial institutions 1.95

Small finance banks 0.57

25 Description: In financial year 2021, over 526 thousand credit guarantees worth nearly 223 billion Indian rupees were approved by public banks within the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in India. This was by far the biggest
contribution within the trust. Non-banking financial companies (NBFCs) followed second with guarantees worth over 81 billion rupees. Read more
Note(s): India; FY 2020
Source(s): CGTMSE
 Share of digitally disbursed non-banking financial corporations' loans in
India from financial year 2017 to 2021
Share of digitally disbursed NBFCs loans in India FY 2017-2021

70%

60.53%
60%
53.05%

50%
Share of loans

40%

30%
23.3%

20%

10%
4.93%
0.68%
0%
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021*

26 Description: The non banking financial corporations in India showed an immense growth in lending through digital mode in the financial year 2020, with around 60 percent of total loans being disbursed through digital channels. There was some decline in digitally
disbursed loans as of November 2021. The country is still at a nascent stage in terms of digital lending. Read more
Note(s): India; FY 2017 to FY 2021; calculated over total number of loans; *The values for the financial year 2021 are available until December 31, 2020. India's financial year begins in April and ends in March. For example, FY 2021 started in April [...] Read more
Source(s): Reserve Bank of India
 Sources

Bajaj Finance
BCG India
BSE (India)
Capitaline
CGTMSE
Cholamandalam Investment and Finance Company
Crisil
EY
FICCI
Ministry of Finance (India)
Moneycontrol
National House Building Council
Reserve Bank of India
SIDBI
TransUnion CIBIL Limited

27