Shriram Finance stock jumps over 5 percent in the morning trading after reporting robust Q2 FY26 financial results. Brokerages are bullish on the stock.
The newly-listed company said that asset quality in unsecured retail loan book has started showing improving trends
The NBFC, which focuses on credit-starved MSMEs, also secured an additional Rs 110 crore in debt from IDFC and Axis Bank
On paper, non-bank sources have offset the fall in bank funding to commercial sector. But trace the source of funds and we go back in many cases to banks, who continue to play an outsized role. India still lacks enough diversity in sources of funding
Brokerage firms expect asset quality of most NBFCs to remain broadly stable amid better customer selection, stricter credit underwriting, and improved collection efforts.
Tata Capital enters the market while navigating a phase of margin compression. While analysts expect profitability to recover, for investors, the IPO is essentially a play on the Tata group’s long-term resilience rather than short-term margin expansion.
Non-bank lenders do not have access to cheap source of funds
'The clear mandate to me is to continue to run the company as you are. They are a shareholder backing us with capital, knowledge, and experience but they will operate at the board level,' Banga tells Moneycontrol
RBI monetary policy norms for easier infrastructure financing push NBFC stocks up.
As at June 30, 2025, Tata Capital has raised around Rs 7,000 crore across its domestic funds and offshore funds, with 53 deals in over 15 years, as per the NBFCs IPO documents.
Analysts estimate the GST cuts to spur a strong demand for vehicles during Navratri - between September 22 and October 2 - and benefit automakers as well as financiers.
Industry watchers expect a phase of consolidation, where stronger players with healthier balance sheets and access to capital markets will pull ahead, while smaller or weaker NBFCs, especially those focused on unsecured lending, may be forced to rethink their strategy or seek partnerships.
Any fresh RBI directive could mainly hit large gold finance companies that have their micro-finance arms disbursing loans by taking the precious metal as collateral, the people said.
Veritas Finance provides working capital loans to MSMEs in urban and semi-urban areas as well as other as affordable housing loans, used commercial vehicle loans and small business loans in rural areas, focusing on MSME space
"As we become a more robust platform, the next logical step is the capital markets. In the next 12 to 18 months, we will seriously look at an IPO. Of course, we want to stabilise the NBFC business and consolidate other areas first. But yes, an IPO is on the cards," said Garg
NBFCs are likely to be selective in passing on the reduced funding costs to borrowers, which will help support their margins, the ratings agency has said
Aye Finance said that the company’s credit cost had come down in Q4FY25 and the same falling trend has continued in Q1FY26.
NBFCs play a vital role in India’s inclusive growth by providing transparent, fair credit to underserved communities. Responsible lending builds trust, reduces risks, and drives sustainable economic development towards 2047 goals
Karnataka accounted for 11 percent of the company’s balance sheet, making this a significant recalibration
Concerns over self-lending risks and systemic instability remain key hurdles; senior official says corporates want both licences and control — “both cannot work”
HDB Financial Services Q1 FY26 financial results: The non-banking finance company's first ever quarterly earnings release post its recent listing on Indian stock exchanges
Remaining an NBFC has merit, but converting to a bank offers long-term funding advantages. The dilemma lies in the cost and valuations involved in the transition
The government is, however, unlikely to concede on other NBFC demands, including reduction in the Rs 20 lakh SARFAESI threshold
By 2047, the government is pushing for the creation of large-scale banks capable of competing globally — including a vision for at least two Indian banks to be among the world’s top 10.
The investment of around $230 million in Infinity was led by Partners Group with participation from existing shareholder Jungle Ventures.