Neutral impactSector
NBFCs must shift focus from loan book expansion to risk-adjusted profitability: Industry leaders
Economic Times 4 hrs ago·11 Oct 2026, 11:47 pm
Non-banking financial companies (NBFCs) are pivoting away from rapid loan growth toward sustainable profitability and risk management. Industry leaders at the ETBFSI NBFC Leaders’ Retreat 2026 highlighted that rising credit costs and the delay in recognizing bad loans are forcing a strategic shift. Consequently, firms are now prioritizing portfolio quality, robust governance, and operational resilience over simply increasing the size of their loan books.
For investors, this signals a maturing phase for the NBFC sector, where financial stability is becoming a key differentiator. While the immediate focus on risk control may temper short-term disbursement growth, it aims to build a more resilient business model. Investors should monitor how these companies manage their asset quality and adapt to new compliance standards in the coming quarters.
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- Category: Sector.
- Assessed as a significant, market-relevant update.
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