The Non-banking financial corporations, or NBFCs, have become an essential part of the Indian economy over the past few years. In a recent report from S&P Global, NBFCs are touted to grow at a rapid pace. The same report had suggested that the Indian economy would grow at 6.8 per cent in FY25.
S&P Global on NBFCs
According to the report, the loan growth of these NBFCs will be stronger than the banking sector.
The S&P Global expects the growth of rated private sector non-banking finance companies to decline to an average of 18 per cent in FY25. In addition, it expects NBFCs to grow at 14 per cent rate.
The major NBFC shares listed on the market appear to have reacted to this with a lukewarm response.
Muthoot Finance Ltd
In the early hours of the day's trade on Wednesday, September 25, the share of one of the biggest private names in the industry, Muthoot Finance Ltd rose by 0.97 per cent or Rs 19.40. After a steady rise in the prospects, the company shares rose to Rs 2,010.40, crossing teh Rs 2,000 mark.
Manappuram Finance Ltd.
However, one of its biggest competitors, Manappuram Finance, was travelling in the opposite direction, with losses of close to 1 per cent. At the time of writing, the shares of Manappuram Finance dipped by 0.93 per cent or Rs 1.91. This took the overall dip to Rs 202.77 per share.
Bajaj Finance Ltd
The shares of Bajaj Finance, a lot like the stocks of the aforementioned Muthoot, also rose with gains of just under 1 per cent. The company shares increased by 0.85 per cent or Rs 64.15. This took the overall value to Rs 7,618.35 a share.
Shriram Finance Ltd
The Mumbai-based Shriram Finance was in the red at the time of writing. The company shares dipped by 0.86 per cent or Rs 30.20, taking the overall value of the shares to Rs 3,486.10 per share, bringing it down, below the Rs 3,500 mark.
Cholamandalam Investment and Fin Co Ltd
The Chennai-based NBFC major Cholamandalam Investment also saw its fortunes decline. However, compared to the ones above, the decline here was relatively marginal. The company shares dropped by 0.25 per cent or Rs 4.10. Thsi took the overall value to Rs 1,610.20 per share.
