India's non-banking financial sector grew by 10%; declined globally by 3 %

India's non-banking financial sector showed a robust growth of 10% in contrast to a global decline of 3%, as highlighted by a report from SBI. Non-banking financial institutions (NBFI), which do not hold full banking licenses and focus primarily on lending and financing, saw Economic Function 2 (EF2) entities, akin to NBFCs in India, leading with a 10% growth rate. \r

India ranks as the third-largest contributor to the global NBFI sector, trailing only the United States and the United Kingdom. Over the past decade, India's banking system has demonstrated resilience, bolstered by improved asset quality and strong macroeconomic fundamentals. \r

Government and regulatory efforts have aimed at fostering a level playing field, enhancing governance practices, expanding financial service accessibility, promoting digital banking adoption, and ensuring financial stability through proactive measures during the pandemic. \r

These initiatives have supported growth, innovation, and inclusivity in India's financial landscape while prioritizing customer protection amidst digital transformations.