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India NBFC & Lending — Bajaj Finance HDFC-Style Compounders

Non-Banking Financial Companies (NBFCs) are India's credit backbone outside the formal banking system. Bajaj Finance, Cholamandalam, Shriram Finance, and microfinance lenders serve the credit-starved middle and lower-middle class. RBI regulation adds governance but limits risk.

NBFC Credit Size₹35 Lakh Cr
Credit Growth14–18%
NPA Levels2–4%
Bajaj Finance AUM₹3.5 Lakh Cr

Stocks in this theme · India NBFC & lending

13 companies in this theme — showing top 12 by market cap.

SymbolCompanyPriceMkt CapROEP/E
BAJFINANCEBajaj Finance₹1,060.25₹6,57,022 Cr
BAJAJFINSVBajaj Finserv₹1,877.45₹3,00,258 Cr
SHRIRAMFINShriram Finance₹1,059₹1,99,141 Cr
CHOLAFINCholamandalam Investment and Finance₹1,728.65₹1,47,592 Cr
PFCPower Finance₹412.3₹1,36,014 Cr
MUTHOOTFINMuthoot Finance₹3,036.15₹1,22,465 Cr
ABCAPITALAditya Birla Capital₹400.55₹1,09,501 Cr
RECLTDREC₹360.6₹94,967 Cr
SBICARDSBI Cards and Payment Services₹626.45₹59,652 Cr
M&MFINMahindra & Mahindra Financial Services₹378.35₹52,546 Cr
SUNDARMFINSundaram Finance₹4,419.7₹49,105 Cr
POONAWALLAPoonawalla Fincorp₹472.35₹41,425 Cr

Research Coverage

  • Top NBFC compounders ranked by AUM growth and ROE
  • Microfinance stress: which lenders are clean?
  • Housing finance comparison: HDFC Life vs PNB Housing vs Can Fin
  • RBI regulatory risk tracker for NBFCs

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Frequently Asked Questions

What is an NBFC?

Non-Banking Financial Company — a financial institution that offers loans, credit, and other banking services but is not a licensed bank. Regulated by the RBI.

Is Bajaj Finance overvalued?

Bajaj Finance trades at a premium (5–7x book) due to its consistent 25%+ AUM growth, cross-sell franchise, and best-in-class collections — a quality premium.