NBFCs witness higher deposit growth than banks, records 21% rise in FY24

Non-Banking Financial Companies (NBFCs) have experienced a remarkable 21% increase in deposit growth for the fiscal year 2024, surpassing the growth rates of traditional banks. This significant rise in deposits indicates a growing trust and preference for NBFCs among investors, likely driven by competitive interest rates and attractive deposit schemes offered by these institutions. The higher deposit growth reflects the expanding role of NBFCs in the financial sector and their ability to attract and retain funds from both retail and institutional investors. This trend also highlights the evolving landscape of financial services in India, where NBFCs are gaining prominence in the deposit market.