{
  "id": 2551064,
  "title": "NBFCs stay on growth track as asset quality remains stable: Report",
  "url": "https://urgent.news/2026/08/22/nbfcs-stay-on-growth-track-as-asset-quality-remains-stable-report",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-22T09:46:41.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/nbfcs-stay-on-growth-track-as-asset-quality-remains-stable-report/articleshow/133421416.cms"
  },
  "original_language": "en",
  "account": "India's non-banking financial companies (NBFCs) are poised to sustain growth in the near to medium term, according to 360 ONE Capital. The brokerage firm highlights that despite geopolitical uncertainties, credit demand remains robust. NBFCs have maintained their growth expectations for FY27 and the medium term, while asset quality is projected to remain stable. However, the brokerage warns that pressure on lending yields and margins, particularly for gold and affordable housing financiers, will be a key concern. NBFC earnings showed strong growth in Q1 FY27, with net interest income (NII) increasing by 23.9% year-on-year, operating profit up by 24.9%, and profit after tax (PAT) rising by 36.9%. Overall, aggregate assets under management (AUM) grew by approximately 19% year-on-year, aligning with expectations. Management commentary suggests that credit demand is resilient, with the West Asia crisis having a minimal impact so far. Delinquency indicators show no signs of asset quality stress from geopolitical situations or El Nino, and stressed assets remain stable across most lending segments. In the vehicle financing sector, AUM growth accelerated to 16.8% year-on-year from 16.4% in the previous quarter, driven by strong disbursement momentum and limited impact from monsoons and geopolitical uncertainties. Housing finance companies, however, experienced slower-than-expected AUM growth of 5.6% year-on-year, partly due to elevated balance transfers at LIC Housing Finance. The company subsequently reduced its FY27 loan growth guidance to 8-10% from 10-12% previously. Other prime HFCs have kept their growth outlook. Gold finance growth moderated to 47.1% year-on-year, following stable gold prices and new loan guidelines, while power financiers remained the weakest segment, with loan books growing by only 2.3% year-on-year and declining by 0.3% sequentially. Margins for power financiers were largely in line with expectations, though Muthoot Finance faced a sharper-than-expected margin compression of around 300 basis points. Going forward, 360 ONE Capital emphasizes that the sustainability of net interest margins will be a key monitorable amid yield pressures, particularly in gold finance and affordable housing finance.",
  "summary": "Non-banking financial companies anticipate steady growth ahead. Credit demand remains robust despite global geopolitical uncertainties. NBFC earnings showed strong growth in the first quarter of FY27. Vehicle financiers experienced accelerated asset under management growth. Gold financiers saw moderated growth and yield pressures.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}