New Delhi: Trade and NBFC credit are expected to remain among the fastest-growing segments of India's banking system, supported by rising formalisation of economic activity, deeper financial penetration and the expanding reach of organised lenders, according to a report by Ashika Institutional Equities. The report said continued adoption of GST, digital payments and cash-flow-based underwriting will support credit expansion, while banks are likely to increasingly favour well-capitalised NBFCs with diversified funding profiles and healthy asset quality.
Combined outstanding credit to the trade and NBFC segments increased to Rs 34.5 trillion in May 2026 from Rs 9.7 trillion in FY18, highlighting the growing role of these segments in system-wide credit growth.
