India’s Leading BFSI & FinTech Companies 2024

[ NBFC SECTOR OVERVIEW ] India’s Leading BFSI and FinTech Companies 2024 32 CAPITAL ADEQUACY The capital position of NBFCs remained healthy with capital to risk weighted asset ratio (CRAR) improving marginally to 27.6% by end-March 2023 from 27.2% by end-March FY2022. The CRAR for NBFCs remained well above the regulatory requirement of 15%. The growth in CRAR during FY2023 can be attributed to the increase in the level of Tier 1 capital than a year ago. ASSET QUALITY The asset quality of NBFCs continued to improve and remained at five-year low due to lower slippages. Amongst sectors, agriculture, industry, and services sectors reported deterioration in asset quality with their GNPA ratio hovering above the overall GNPA ratio of NBFCs. On the other hand, retail sector witnessed improvement in asset quality in FY2023. Within services, commercial real estate segment reported the highest GNPA at 16.6% in FY2023 as against 13.9% in FY2022. Asset quality of NBFCs continues to improve (%) Source: RBI, Dun & Bradstreet Research NBFC GAME CHANGERS INCLUSIVE BFSI MODELS NBFCs, by stepping up to fill the credit gap, have always remained at the forefront of the battle for financial inclusion in India. In the coming years, with various technology innovators, NBFCs are expected to further drive financial inclusion by developing new financial products, business models, and operational strategies. NBFCs will be exploring various use cases of AI, ML, blockchain, and RPA to further ease KYC verification, and loan disbursement that will help them tap the unserved customer segments. TECH TSUNAMI New age NBFCs are using digital technology more than ever in areas like lead generation, customer onboarding, underwriting, credit/loan disbursement. In the coming years, they are expected to use Dun & Bradstreet