Is NBFC business profitable?

Yes, Non Banking Financial Companies (NBFC’s) businesses are profitable. This can be seen in the recently published Financial Stability Report of the Reserve Bank of India (RBI). You can read about the Types of Non Banking Financial Institutions – Functions & Objectives in the given link.

Currently it is the commercial banks which are suffering from bad loans, non performing assets (NPA), which has affected its growth and profitability.

Further readings:

  1. NBFCs & IBC: RSTV – Big Picture Discussion on the RBI’s move to resolve NBFCs under insolvency law
  2. Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]

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