1、NBFCs in India:Growth and 2024 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights re

2、served.2 2The NBFC sector in India has witnessed remarkable transformations since its emergence,with segments such as housing finance,microfinance and consumer finance contributing to its expansion.This growth is driven by various factors,such as a rising middle class,enhanced financial inclusion an

3、d positive policy interventions.Additionally,the sector has benefited from a favorable regulatory framework and a stable macroeconomic scenario.As of 2023,the NBFC sector has reached an impressive size of USD326 billion1,underscoring its expanding influence in the financial domain.The sector has als

4、o shown resilience in terms of sound capital position,improved asset quality,adequate provisioning and higher profitability.Furthermore,the sector has leveraged digitisation to offer alternative financing options,especially to the MSMEs,which face challenges in obtaining loans from traditional banks

5、.With the growth witnessed in the NBFC sector and India reaching an estimate of USD7 trillion GDP by 20301,Indias financial need will rise,creating ample opportunities for NBFCs.Digitisation has been a game-changer for the Non-Banking Financial Company(NBFC)sector,enabling faster and more efficient

6、processes,as well as a superior customer experience.NBFCs are increasingly focusing on digitisation as a key differentiator,with a particular emphasis on the use of super apps to source and partner with customers.This trend is set to continue,as the demand for digital services continues to grow.The