NBFC

Non-banking financial companies focused on gold-backed lending are projected to deliver improved profitability in the coming fiscal year, supported by sustained demand, operational efficiencies and historically low credit losses. Industry estimates suggest average return on managed assets could rise to between 4.25 percent and 4.5 percent, reflecting strengthened balance sheets and favorable asset quality trends. Despite intensifying competition from banks and diversified NBFCs, the gold loan segment remains structurally resilient due to its secured nature and short-tenor profile.

Cholamandalam Investment and Finance Company Ltd. (CIFCL), a prominent player in India’s non-banking financial services sector, posted a robust 21% year-on-year increase in net profit for the first quarter of FY26. The growth was underpinned by a healthy rise in disbursements, steady asset quality, and expanding customer base across both urban and rural markets. The company’s continued focus on retail lending, digital transformation, and prudent risk management has enabled it to capitalize on the post-pandemic credit demand resurgence, despite macroeconomic headwinds.

Laxmi India Finance, a non-banking financial company (NBFC) known for its focus on vehicle and MSME loans in semi-urban and rural India, is gearing up for its initial public offering (IPO) slated to open on July 29. The company aims to raise Rs. 254 crore through the public issue, with the funds earmarked for expanding its loan book, improving capital adequacy, and strengthening operational infrastructure. Positioned within a sector undergoing formalization and digital transition, the IPO will test investor appetite for smaller NBFCs operating outside India’s metropolitan hubs.