Indian NBFC sector now world’s 3rd largest

New Delhi: India’s non-banking financial sector has grown to become the third largest in the world, next only to the United States and the United Kingdom, according to an SBI report that highlights the growing strength of the country’s financial sector.

Non-banking financial institutions do not possess a full banking licence and thus, can’t accept public deposits. These entities focus on giving loans to consumers and businesses, which play a key role in driving up economic growth. Over the past decade, the Indian banking system has demonstrated remarkable resilience, overcoming numerous challenges posed by both domestic and international economic environments, the report states.

It said that the improvement in asset quality and the strong macroeconomic fundamentals have played a crucial role in improving the Indian banking sector.

It highlighted that the Indian government and regulatory bodies have focused on creating a level playing field for financial institutions.