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Business
Experts say banks and NBFCs must work together to drive India’s development goals
✍️ Fortune India
🗓 29 Oct 2026, 04:43 PM
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Industry experts argue that banks and non‑bank financial companies can complement each other to achieve the country’s economic development objectives.
Industry analysts cited in Fortune India contend that the Indian financial system will reach its development targets only if traditional banks and non‑bank financial companies (NBFCs) operate in a coordinated manner. Banks, with their extensive deposit base and regulatory backing, are positioned to provide stable, low‑cost funding, while NBFCs bring agility, niche market reach and innovative credit products.
The experts emphasize that a complementary framework—where banks channel long‑term capital and NBFCs focus on short‑term, high‑growth segments—can expand credit penetration without compromising financial stability. They also point to the need for clearer regulatory guidelines that encourage collaboration rather than competition.
Policy makers are urged to create platforms for information sharing and joint risk assessment, enabling both sectors to pool resources for infrastructure financing, MSME support and green investments. Such synergy, the analysts argue, is essential for India to transition toward a more developed economy.
The experts emphasize that a complementary framework—where banks channel long‑term capital and NBFCs focus on short‑term, high‑growth segments—can expand credit penetration without compromising financial stability. They also point to the need for clearer regulatory guidelines that encourage collaboration rather than competition.
Policy makers are urged to create platforms for information sharing and joint risk assessment, enabling both sectors to pool resources for infrastructure financing, MSME support and green investments. Such synergy, the analysts argue, is essential for India to transition toward a more developed economy.