NBFCs Poised to Rival Banks: Sitharaman Sets 50% Credit Share Target
Finance Minister Nirmala Sitharaman has declared that Non-Banking Financial Companies (NBFCs) are no longer just “shadow banks” and should aim to achieve a lending share equivalent to 50% of commercial banks’ credit by 2047—a significant jump from their current 24% share.
NBFC Credit Share
NBFC lending has surged from ₹24 lakh crore in March 2021 to ₹48 lakh crore by March 2025, effectively doubling in four years. Sitharaman emphasized that timely, robust regulatory reforms have strengthened NBFCs’ capital structures, governance systems, and risk management, positioning them on par with traditional banks.
Fair Lending
Alongside growth, the Minister urged NBFCs to maintain ethical lending practices. She stressed the importance of transparent interest rates, clarity in charges, and respectful recovery processes, warning that financial inclusion must not translate into consumer exploitation.
Co‑Lending with Banks
Sitharaman called for deepened collaboration between NBFCs and banks through co-lending models, especially targeting priority sectors. She encouraged the adoption of interoperable digital platforms to expedite funding flows and reduce delays in underserved regions, thereby boosting financial inclusion.
Sectoral Focus & Digital Push
The Minister also directed NBFCs to ensure at least half their future growth targets sectors such as green energy, MSMEs, and affordable housing. She urged the rapid adoption of digital channels and common standards to streamline operations and align with India’s vision of a developed economy by 2047.
