How NBFCS Minimise Their NPAS

How NBFCS Minimise Their NPAS

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The Non-Banking Financial Companies (NBFCs) have made strong roots in the Indian Financial Sector. These financial institutions target niche segments of the population and mostly help small businesses or salaried employees with their momentary needs. After banks and insurance companies, NBFCs come at number 3 in the Indian financial system, while banks could manage to grow credit at 5.1 percent in the final quarter of the last fiscal year, NBFCs could register a credit growth of 250 percent more than banks - i.e., 13 percent. According to a recent study by the Reserve Bank of India (RBI), NBFCs are much ahead of commercial banks in managing Non-Performing Assets (NPAs), and their asset quality is also far better than banks.

Sector witnessing an unprecedented growth

The demands and aspirations of India's middle-class segment are growing speedily and gadgets like laptops, smartphones, and LED TVs are the common needs of almost every household in the urban culture of the country. Besides, life is difficult for many without a personal vehicle, if not a car; a bike is must to have for families in metros and large cities.