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Bank lending to NBFCs jumps 26 percent as RBI eases risk weights in FY26

Economy
Published on 2 May 2026
Bank lending to NBFCs jumps 26 percent as RBI eases risk weights in FY26

RBI changes risk weights and lending accelerates

Bank lending to non-banking finance companies surged 26% in the previous fiscal year, the fastest pace expected into FY26. The jump is linked to the Reserve Bank of India easing risk weights, making NBFC exposures less capital-intensive for banks. Looser regulatory norms and lower lending rates further boosted financing demand, reshaping credit flows.

  • Bank lending to NBFCs rose 26% in the latest fiscal year
  • RBI easing risk weights helped reduce capital burden for banks
  • More lenient rules and lower rates improved NBFC borrowing
  • Expect stronger NBFC financing momentum into FY26
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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