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AN ANALYSIS OF THE FINANCIAL PERFORMANCE OF NBFC

📘 Volume 13 📄 Issue 3 📅 March 2026

👤 Authors

Vaishnavi S, Dr. Ganesan Alias Kanagaraj 1
1. Department of MBA, Saveetha Engineering College, MBA, Chennai

📄 Abstract

Non-Banking Financial Companies (NBFCs) have emerged as critical players in India’s financial ecosystem, complementing banks by providing credit access to underserved sectors. Their role in financial inclusion, infrastructure financing, and retail lending has grown significantly in recent years. However, NBFCs face challenges such as liquidity constraints, asset quality deterioration, and regulatory pressures. This paper presents a systematic review and comparative analysis of financial performance indicators of NBFCs, including profitability, asset quality, capital adequacy, and liquidity management. Using secondary data from RBI reports, industry publications, and peer-reviewed studies (2010–2025), the findings indicate that while NBFCs contribute substantially to credit expansion, their performance is highly sensitive to macroeconomic shocks and regulatory changes. The study highlights the importance of robust risk management, diversification of funding sources, and digital transformation in sustaining NBFC growth and stability.

🏷️ Keywords

NBFCs Financial Performance Asset Quality Liquidity Risk Profitability Financial Inclusion Risk Management

📚 How to Cite:

Vaishnavi S, Dr. Ganesan Alias Kanagaraj , AN ANALYSIS OF THE FINANCIAL PERFORMANCE OF NBFC , Volume 13 , Issue 3, March 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) ,

🔗 PDF URL

https://cdn.eprapublishing.org/article/202604-07-026861.pdf

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