India Themes · Discover

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

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

SymbolCompanyPriceMkt CapROEP/E
BAJFINANCEBajaj Finance Ltd₹1,060.3₹6,51,639 Cr17.1%39.90
BAJAJFINSVBajaj Finserv Ltd₹1,876.4₹3,02,560 Cr15.4%211.00
SHRIRAMFINShriram Finance Ltd₹1,058.8₹2,43,342 Cr16.4%24.30
CHOLAFINCholamandalam Investment & Finance Company Ltd₹1,728₹1,45,626 Cr19.3%27.90
PFCPower Finance₹412.3₹1,36,014 Cr
MUTHOOTFINMuthoot Finance Ltd₹3,035.6₹1,21,530 Cr30.6%12.00
ABCAPITALAditya Birla Capital Ltd₹400.6₹1,07,502 Cr11.6%34.50
RECLTDREC Ltd₹360.65₹94,427 Cr20.1%5.79
LTFL&T Finance Ltd₹305.9₹76,122 Cr11.8%22.90
BAJAJHFLBajaj Housing Finance Ltd₹85.46₹70,750 Cr12.1%27.60
SBICARDSBI Cards & Payment Services Ltd₹626.85₹59,571 Cr14.7%27.50
M&MFINMahindra & Mahindra Financial Services Ltd₹378.15₹51,929 Cr12.9%16.00

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

Parent Discover Hub

Discover Structural Investment Themes keeps this page inside the main discover cluster with sibling theme and workflow links.

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.