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NBFCs' dependence on bank borrowings to rise in current fiscal: Crisil
Apr-16-2026

Crisil Ratings has said that non-banking finance companies' (NBFCs) reliance on bank borrowings is expected to rise in current financial year (FY27) as interest rates decline. It stated the share of bank borrowings, boosted to 43% by increased activity in the second half of the previous financial year (H2FY26), will inch up further to up to 45 per cent by the end of the current year.

It attributed the shift in preference to lower interest rates in the bank lending market, which are likely to result in a tapering of debt capital market issuances. It noted ‘While bank lending rates continued to decline throughout last fiscal, bond yields, after declining in the first half, inched up in the second half and remain elevated.’

Moreover, it said the share of external commercial borrowing (ECB) issuances is expected to remain subdued in the near term due to geopolitical uncertainties and the resulting exchange rate volatility. It added that in such a scenario, securitisation may provide some support to resource raising for NBFCs.


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