Indian NBFC Sector Records 10% Growth Amidst Global Decline: SBI Report

ENA Economy 2024-06-17 17:45:42 New Delhi, Jun 17 (KNN) A recent report by the State Bank of India (SBI) has shed light on the divergent growth trajectories of the non-banking financial sector globally and within India. While the sector experienced a 3 per cent decline worldwide in 2022, a notable contraction, India's non-banking financial institutions (NBFIs) registered a robust 10 per cent growth. Non-banking financial institutions, lacking full banking licenses, primarily focus on lending and financing activities rather than accepting public deposits. The report highlights that the entities undertaking lending operations, akin to India's Non-Banking Financial Companies (NBFCs), exhibited the highest growth rate of around 10 per cent among all economic categories within the global non-bank financial intermediation sector. India has emerged as the third-largest market for non-banking financial entities, trailing only the United States and the United Kingdom. Over the past decade, the Indian banking system has demonstrated remarkable resilience, navigating domestic and international economic challenges. Improved asset quality and strong macroeconomic fundamentals have played a pivotal role in bolstering the sector's performance. The Indian government and regulatory bodies have taken proactive measures to create a level playing field for financial institutions. These initiatives include strengthening banks through mergers and capital infusion, enhancing governance practices, expanding the reach and quality of financial services, and promoting digital banking adoption. During the COVID-19 pandemic, substantial capital and liquidity buffers maintained by the Reserve Bank of India (RBI) ensured the financial sector's stability. The RBI's regulatory measures, such as enforcing prudential norms, have further cushioned the sector against economic shocks, fostering growth and innovation. India's digital banking landscape has also witnessed significant advancements, contributing to the sector's growth. The transition to digital platforms has expanded access to financial services, making them more inclusive and efficient. Simultaneously, the government and regulatory bodies have prioritized customer protection, safeguarding public interests amidst the digital transformation. As the non-banking financial sector navigates contrasting global and domestic trends, India's proactive approach to regulatory oversight, digital transformation, and inclusive financial services has positioned the country as a resilient and innovative player in the industry. (KNN Bureau) 38241 https://knnindia.co.in/news/newsdetails/economy/indian-nbfc-sector-records-10-growth-amidst-global-decline-sbi-report 2024-06-17 17:45:42 knnindia.co.in Indian NBFC Sector Records 10% Growth Amidst Global Decline: SBI Report