The non-banking financial sector recorded robust performance in the October to December quarter (Q3) of FY25, driven by strong loan growth and higher net profit. Housing finance companies (HFCs) and non-banking financial companies (NBFCs) benefited from a positive surprise in net interest income (NII), which helped sustain net interest margins despite elevated operating expenses. Housing
As the liquidity in the banking system remains in the deficit of around Rs 2 lakh crore, the spread between government bonds and corporate bonds has widened to 50 basis points from 25 basis points. This has raised the cost of raising funds for banks and other financial institutions in the debt market, experts said.
Nithin Kamath, the founder and CEO of Zerodha, has raised alarm over India’s growing borrowing habits, particularly in the segment of small-ticket personal loans and credit card borrowings. According to Kamath, aggressive marketing strategies by fintech apps have fueled this trend, with an increasing number of individuals taking loans they cannot afford. Kamath highlighted a