Moody’s Ratings projects India’s GDP to expand by 6.6% in the fiscal year ending March 2025. This growth is expected to bolster the profitability of Non-Banking Financial Companies (NBFCs) by fueling robust loan demand, even amidst rising funding costs. The strong economic conditions are anticipated to help NBFCs maintain asset quality despite potential increases in customer debt burdens due to higher interest rates.
This optimistic outlook underscores the resilience of India’s financial sector and its capacity to adapt to evolving economic landscapes. Investors and stakeholders are likely to find renewed confidence in the NBFC sector’s stability and growth potential. As the economy continues to expand, NBFCs are poised to play a pivotal role in facilitating credit access across various segments.
