BT Banking & Economy Summit: From rural lending to AI, How NBFCs are powering India’s credit expansion
Industry leaders at the BT Banking & Economy Summit highlighted the expanding role of NBFCs in deepening credit penetration across India. From rural lending to AI-driven decision support, NBFCs are emerging as critical enablers of the Viksit Bharat growth vision.
- Feb 28, 2026,
- Updated Feb 28, 2026 7:41 PM IST
At the Business Today Banking & Economy Summit, industry leaders discussed the growing role of Non-Banking Financial Companies (NBFCs) in supporting India’s journey towards becoming a developed economy under the Viksit Bharat vision. The discussion highlighted how NBFCs are expanding credit access and serving segments often underserved by traditional banks.
Hitesh Sethia, Managing Director and Chief Executive Officer of Jio Financial Services, said the future of financial services will rest on three key pillars: deep capital, deep technology, and deep trust. He added that platform-based models could increasingly shape the sector, enabling institutions to collaborate and overcome individual risk and capital constraints.
Sethia also spoke about the role of artificial intelligence in financial services. While AI is already widely deployed in areas such as customer service, marketing, and operations, he believes the larger opportunity lies in helping customers make better financial decisions. Simplifying complex financial products and reducing the cognitive burden on customers, he said, could make financial services significantly more accessible.
Gunit Chadha, Founder of APAC Financial Services and former CEO of Deutsche Bank Asia Pacific, said both large and specialised NBFCs have an important role in India’s financial ecosystem. According to him, smaller NBFCs can succeed by focusing on niche segments such as MSMEs and borrowers without formal income documentation or strong credit histories. These customers often require customised products and deeper credit assessment, areas where specialised NBFCs are better positioned.
He added that while specialised NBFCs play a critical role, consolidation in the sector is likely over time as companies scale and diversify. Chadha noted that access to capital remains a key challenge, particularly for mid-sized, unlisted NBFCs. Greater participation from private equity investors, he said, could provide the growth capital required for expansion.
Sudipta Roy, Managing Director and Chief Executive Officer of L&T Finance, highlighted the strong growth trajectory of NBFCs in recent years. Over the past two years, NBFC credit growth has averaged 18–20%, compared with 11–12% for banks. He noted that NBFCs are instrumental in onboarding new borrowers into the formal financial system, with nearly 60–70% of new-to-credit retail customers coming through NBFC channels.
Roy also underscored the potential in rural lending, supported by improving rural incomes and favourable agricultural conditions. As India advances towards its long-term economic ambitions, he said NBFCs are well positioned to expand their share of the credit market and emerge as a central pillar of the financial system.
At the Business Today Banking & Economy Summit, industry leaders discussed the growing role of Non-Banking Financial Companies (NBFCs) in supporting India’s journey towards becoming a developed economy under the Viksit Bharat vision. The discussion highlighted how NBFCs are expanding credit access and serving segments often underserved by traditional banks.
Hitesh Sethia, Managing Director and Chief Executive Officer of Jio Financial Services, said the future of financial services will rest on three key pillars: deep capital, deep technology, and deep trust. He added that platform-based models could increasingly shape the sector, enabling institutions to collaborate and overcome individual risk and capital constraints.
Sethia also spoke about the role of artificial intelligence in financial services. While AI is already widely deployed in areas such as customer service, marketing, and operations, he believes the larger opportunity lies in helping customers make better financial decisions. Simplifying complex financial products and reducing the cognitive burden on customers, he said, could make financial services significantly more accessible.
Gunit Chadha, Founder of APAC Financial Services and former CEO of Deutsche Bank Asia Pacific, said both large and specialised NBFCs have an important role in India’s financial ecosystem. According to him, smaller NBFCs can succeed by focusing on niche segments such as MSMEs and borrowers without formal income documentation or strong credit histories. These customers often require customised products and deeper credit assessment, areas where specialised NBFCs are better positioned.
He added that while specialised NBFCs play a critical role, consolidation in the sector is likely over time as companies scale and diversify. Chadha noted that access to capital remains a key challenge, particularly for mid-sized, unlisted NBFCs. Greater participation from private equity investors, he said, could provide the growth capital required for expansion.
Sudipta Roy, Managing Director and Chief Executive Officer of L&T Finance, highlighted the strong growth trajectory of NBFCs in recent years. Over the past two years, NBFC credit growth has averaged 18–20%, compared with 11–12% for banks. He noted that NBFCs are instrumental in onboarding new borrowers into the formal financial system, with nearly 60–70% of new-to-credit retail customers coming through NBFC channels.
Roy also underscored the potential in rural lending, supported by improving rural incomes and favourable agricultural conditions. As India advances towards its long-term economic ambitions, he said NBFCs are well positioned to expand their share of the credit market and emerge as a central pillar of the financial system.