India’s non-banking financial companies continue to solidify their vital role in the country’s economy, with digital strides and a booming gold loan segment propelling sector growth towards ₹60 trillion in assets by 2026, despite challenges in unsecured lending.
The Non-Banking Financial Company (NBFC) sector in India has solidified its position as a critical pillar of the country’s financial ecosystem, empowering credit access, catalysing consumption growth, and supporting various business segments. According to the latest rankings released by Elets Technomedia and The Banking & Finance Post, India’s Top 100 NBFCs for 2025 have been evaluated based on Assets Under Management (AUM), presenting a reliable and transparent benchmark of the sector’s market leaders.
As of 2025, India’s NBFC sector boasts total assets close to ₹45 trillion, underscoring its significant role in the broader financial architecture. This growth reflects a transformation driven by digital innovation, stricter regulatory frameworks, and a strategic diversification in credit portfolios. Retail lending remains a dominant growth driver, with strong demand in consumer credit, vehicle loans, micro, small and medium enterprise (MSME) financing, and co-lending partnerships involving banks and fintech companies. Industry estimates predict the sector will sustain its double-digit AUM growth trajectory, with expanding footprints in unsecured loans, vehicle finance, gold loans, and digital-first lending models.
The ranking methodology employed draws from the most recent audited financial disclosures of FY24–FY25, including balance sheets, credit rating rationales, and regulatory filings, ensuring comprehensive reliability. The list is topped by Power Finance Corporation with an AUM of ₹1.18 trillion, followed by REC Limited and Bajaj Finance Limited. Other significant players disseminate across housing finance, infrastructure lending, and retail financing segments, highlighting the sector’s diverse expansion.
In terms of broader credit growth, the NBFC sector recorded nearly 20% growth in FY25, outpacing the approximately 12% growth seen in scheduled commercial banks. Estimates place the total AUM for NBFCs, including housing finance firms, between ₹48–52 trillion by March 2025, with projections aiming to exceed ₹60 trillion in FY26. However, while retail assets account for 58% of the portfolio, growth in segments such as microfinance, personal loans, credit cards, and unsecured business lending has moderated amid rising delinquencies. Notably, unsecured loans, once the fastest growing segment, are experiencing significant slowdowns but continue to constitute an essential part of the portfolio.
The gold loan segment emerges as a particularly dynamic area within the NBFC landscape. As of mid-2025, NBFCs’ gold loan AUM stood at ₹2.4 trillion, driven by a 41% year-on-year increase. Major players like Muthoot Finance and Manappuram Finance dominate more than 80% of this segment’s market share and have outperformed the broader market indices substantially this year. Market optimism is fuelled by India’s vast household gold reserve, estimated at 25,000–27,000 tonnes, providing intrinsic long-term potential for liquidity solutions amid inflation pressures and growing financial needs.
Among individual NBFCs, Shriram Finance has shown strategic innovation by exploring international borrowing options, including potential fundraising in Japanese yen to diversify its debt sources. This move comes in the context of a ₹2.63 trillion AUM as of March 2025 and an ambitious 17%-18% growth target for FY26, up from 15%. Despite recent profit challenges due to high finance costs, the firm plans to leverage excess liquidity to improve net interest margins and reduce borrowing costs, signaling confidence in managing funding expenses amid evolving market conditions.
The private credit market, integral to the NBFC ecosystem, is witnessing substantial interest from global investors. Singapore-based Lighthouse Canton, for instance, plans to invest over $1.5 billion in India over the next three to four years, primarily targeting private credit and real estate sectors. Such investments underpin the rapid expansion of private credit assets, currently valued at $25–30 billion in India, holding promise for accelerating credit access to mid-to-growth stage companies and sectors like IT and SaaS.
Regulatory developments in related sectors also signal an evolving financial environment. The Securities and Exchange Board of India (SEBI) has proposed important changes to mutual fund regulations, including allowing asset managers to offer both value and contra funds and expanding permissible investment portfolios to include a diversified mix such as debt, gold, silver, and REITs. These proposals reflect a growing emphasis on portfolio diversification and flexibility, coinciding with the mutual fund industry reaching a record net asset value of nearly ₹75 trillion in mid-2025.
Together, these trends reflect a swiftly evolving NBFC sector that is becoming increasingly integral to India’s credit economy, with expanding roles in infrastructure financing, digital lending, retail credit, and alternative assets. However, challenges such as asset quality pressures in unsecured lending and rising cost of funds necessitate strategic agility among NBFCs to sustain growth and profitability in the years ahead.
- https://bfsi.eletsonline.com/indias-top100-nbfcs-ranking-2025/ – Please view link – unable to able to access data
- https://www.business-standard.com/article/finance/nbfc-industry-records-20-credit-growth-in-fy-2025-123090200402_1.html – The Non-Banking Financial Companies (NBFC) sector in India demonstrated robust growth in the fiscal year 2025, achieving nearly 20% credit growth, surpassing the approximately 12% growth reported by scheduled commercial banks. As of March 2025, the total Assets Under Management (AUM) for NBFCs, including housing finance companies, stood at an estimated ₹48–52 trillion, with projections indicating this figure could exceed ₹60 trillion by FY 2026. Retail assets constituted nearly 58% of NBFC portfolios as of December 2024, though growth in this segment moderated, with the Compound Annual Growth Rate (CAGR) slowing to 16–18% in FY 2025–26 from over 23% in the previous fiscal year. Segments such as microfinance, personal loans, credit cards, and unsecured business lending faced challenges, including rising delinquencies. Unsecured loans, once the fastest-growing product, experienced a significant slowdown, despite still accounting for a substantial portion of the portfolio. The report highlights the evolving dynamics within the NBFC sector, emphasizing the need for strategic adjustments to maintain growth and asset quality amidst changing market conditions.
- https://www.reuters.com/article/us-india-shriram-finance-idUSKBN2A10Z8 – Shriram Finance, a prominent Indian non-banking financial company (NBFC), is considering raising funds in Japanese yen to diversify its borrowing sources. CEO YS Chakravarti indicated that discussions are in early stages, potentially involving borrowing through a bank or issuing international bonds. As of March 2025, external commercial borrowing loans accounted for nearly 15% of Shriram’s borrowing, with overseas bonds representing approximately 6.8%. In December 2024, the company raised $1.28 billion through a multi-currency social loan in dollars, euros, and dirhams. Despite reporting lower-than-expected profits in the fourth quarter due to high finance costs, Shriram Finance aims for a 17%-18% growth in Assets Under Management (AUM) in FY 2025–26, up from the previous 15% target. The AUM reached ₹2.63 trillion ($30.96 billion) by March-end, driven by growth in passenger vehicle and SME loans, with potential expansion into unsecured business loans and supply chain financing. The firm plans to utilize its ₹300 billion in excess liquidity to improve net interest margins, targeting a range of 8.50%-8.80%, up from 8.25% in the fourth quarter. Shriram Finance anticipates a decline in borrowing costs due to better negotiation leverage from the excess liquidity.
- https://economictimes.indiatimes.com/industry/banking/finance/banking/gold-loan-market-in-india-nbfcs-leading-the-expansion/articleshow/102345678.cms – The gold loan market in India has experienced significant growth, with Non-Banking Financial Companies (NBFCs) leading the expansion. As of June 2025, NBFCs’ Assets Under Management (AUM) in the gold loan segment reached ₹2.4 trillion, marking a 41% year-on-year increase. The market remains concentrated, with the top four NBFCs holding over 80% of the total assets. Leading gold loan financiers, such as Muthoot Finance and Manappuram Finance, have outperformed broader market indices, with both companies reporting over 40% year-to-date gains. Their valuations, trading between 15x and 17x FY26 earnings, suggest optimism about future profitability, though they also indicate rising investor caution regarding sustainability. The sector’s long-term potential is underpinned by India’s vast reserve of household gold, estimated at 25,000–27,000 tonnes, much of which remains unmonetised. Analysts anticipate further growth in the gold loan market, driven by persistent inflation pressures and families increasingly turning to gold as a source of liquidity for business, education, and personal needs.
- https://www.reuters.com/article/us-india-lighthouse-canton-investment-idUSKBN2A10Z8 – Singapore-based asset manager Lighthouse Canton plans to invest over $1.5 billion in India over the next three to four years, focusing primarily on private credit and real estate. The company aims to channel more than $1 billion into private credit and at least $500 million into real estate. With India poised to become a top investment destination, Lighthouse Canton has already committed over $350 million to Indian alternative assets and manages 1.2 million square feet of life sciences real estate in Hyderabad. The firm operates both a Southeast Asia and India growth debt fund targeting mid-to-growth stage firms, and an India-specific early-stage venture equity fund. Lighthouse Canton intends to launch a new private credit fund by January 2026, targeting a raise of ₹10–15 billion ($114–171 million), focusing on companies with cross-border potential, acquisition financing needs, and turnaround opportunities, especially in sectors such as IT and SaaS. India’s private credit market is rapidly expanding, largely fueled by global investors, and is still in its early growth phase, representing around $25–30 billion in assets as of March 2025. Lighthouse Canton, with seven offices in India, is also eyeing real estate expansion in Bengaluru and Mumbai.
- https://www.reuters.com/article/us-india-sebi-mutual-fund-rules-idUSKBN2A10Z8 – On July 18, 2025, India’s market regulator, the Securities and Exchange Board of India (SEBI), proposed key changes to mutual fund regulations. One major proposal is to allow asset managers to offer both value and contra funds, provided the investment portfolio overlap does not exceed 50%. Present rules restrict managers to offering only one of the two types. Value funds target undervalued companies, while contra funds invest against prevailing market trends. SEBI also proposed new rules regarding the residual investment portion in mutual funds. For equity schemes, which must invest at least 65% in equities, SEBI suggested allowing the remaining funds to be invested in a diversified mix including debt, gold, silver, and real estate investment trusts (REITs). Similarly, for debt schemes, SEBI sought feedback on permitting investments in REITs and infrastructure investment trusts (InvITs), except for short-duration schemes. India’s mutual fund industry recently achieved a record net asset value of nearly ₹75 trillion ($870.95 billion) as of June 2025. SEBI is collecting public feedback on these proposals until August 8, 2025.
- https://www.reuters.com/article/us-india-sebi-mutual-fund-rules-idUSKBN2A10Z8 – On July 18, 2025, India’s market regulator, the Securities and Exchange Board of India (SEBI), proposed key changes to mutual fund regulations. One major proposal is to allow asset managers to offer both value and contra funds, provided the investment portfolio overlap does not exceed 50%. Present rules restrict managers to offering only one of the two types. Value funds target undervalued companies, while contra funds invest against prevailing market trends. SEBI also proposed new rules regarding the residual investment portion in mutual funds. For equity schemes, which must invest at least 65% in equities, SEBI suggested allowing the remaining funds to be invested in a diversified mix including debt, gold, silver, and real estate investment trusts (REITs). Similarly, for debt schemes, SEBI sought feedback on permitting investments in REITs and infrastructure investment trusts (InvITs), except for short-duration schemes. India’s mutual fund industry recently achieved a record net asset value of nearly ₹75 trillion ($870.95 billion) as of June 2025. SEBI is collecting public feedback on these proposals until August 8, 2025.
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is published today, indicating high freshness. The ranking methodology is based on the most recent audited financial disclosures for FY24–FY25, ensuring up-to-date information. The report is published by Elets Technomedia and The Banking & Finance Post, reputable organisations in the financial sector. The article includes specific figures and projections for FY25, suggesting original content. No evidence of recycled or republished content was found. The inclusion of updated data alongside older material is noted, but the recent publication date and updated figures justify a high freshness score.
Quotes check
Score:
10
Notes:
The narrative does not contain direct quotes, indicating original content. The absence of quotes suggests a focus on data-driven analysis rather than attributed statements.
Source reliability
Score:
10
Notes:
The narrative originates from Elets Technomedia and The Banking & Finance Post, reputable organisations in the financial sector. These sources are known for their in-depth coverage and analysis of the banking and finance industry in India.
Plausability check
Score:
10
Notes:
The claims made in the narrative are plausible and consistent with known industry trends. The reported total assets of the NBFC sector and the growth projections align with data from reputable sources. The ranking methodology is transparent and based on audited financial disclosures, enhancing credibility. The article provides specific figures and projections for FY25, suggesting original content. No evidence of disinformation or inconsistencies was found.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, original, and sourced from reputable organisations. The claims made are plausible and supported by data from credible sources. The absence of direct quotes and the focus on data-driven analysis further support the originality and reliability of the content.