NBFCs Turn to Public Deposits, Bonds for Funding: Report

Non-Banking Financial Companies (NBFCs) are moving away from the traditional way of bank borrowings and increasingly turning to public deposits and domestic bond markets for substantial capital raising, according to a recent report by Deven Choksey Research.

- TBG NETWORK

NBFCs provide financial services similar to those of banks, but they are not commercial schedule banks. They offer loans, investments, and other financial products, regulated by the Reserve Bank of India (RBI), but they do not accept traditional deposits like banks.

NBFCs witnessed a robust year in fiscal year 2025 and grew faster than traditional banks in lending activity. NBFCs recorded a credit growth of 20 per cent, much higher than the 12 per cent growth seen in the banking sector.