Daijiworld Media Network - New Delhi

New Delhi, Jul 9: Gross loan advances by Non-Banking Financial Companies (NBFCs) have doubled in just four years—from ?24 lakh crore in March 2021 to Rs 48 lakh crore as of March 2025—Finance Minister Nirmala Sitharaman announced at the NBFC Symposium 2025 held on Wednesday.

Highlighting the sector’s growing relevance, Sitharaman said NBFCs have become a key source of credit for traditionally underserved segments. “With over 9,000 registered NBFCs—ranging from large infrastructure lenders to small microfinance institutions—they serve as the first credit point for crores of individuals and small businesses,” she noted.

She said that regulatory adjustments such as restored risk weights on bank lending and softened financial conditions are set to further support credit growth.

With the Reserve Bank of India recently easing fund costs for NBFCs, the Finance Minister urged the industry to ensure the benefit is passed on to consumers. “The government is committed to enabling a responsive, consultative policy environment,” she assured.

Sitharaman also advocated deeper collaboration between banks and NBFCs through institutionalised co-lending arrangements, backed by seamless digital platforms and interoperable standards to expand outreach efficiently.

Rejecting the term "shadow banks," she emphasised the strengthened oversight of NBFCs. “Some large NBFCs today match banks in governance and compliance. This marks a natural progression, and robust players can now aspire to become banks themselves,” she added.

The Finance Minister reiterated that all concerns raised by NBFCs during consultations would be addressed seriously, reaffirming the Centre’s commitment to inclusive financial sector growth.