India financial sector sees credit shifts and NBFC recovery projections

India’s financial sector is experiencing significant shifts across credit, investment, and non-banking finance. An EY report indicates that the private credit market in the first half of 2026 saw a rise in mid-sized transactions, which accounted for 61 per cent of total deal value. Total investments reached USD 3.5 billion, with domestic funds representing 74 per cent of the total deal value.

In the non-banking financial company (NBFC) sector, Motilal Oswal Financial Services projects a cyclical recovery. The brokerage expects profit after tax (PAT) for its NBFC coverage universe to grow by 24 per cent in FY27 and 18 per cent in FY28, driven by improved loan growth and asset quality. However, risks such as the West Asia crisis, potential inflation, and monsoon conditions remain key concerns.

Additionally, the Money Expo India 2026 is scheduled for August 29-30 in Mumbai at the Jio World Convention Centre. The event aims to address India’s expanding financial landscape, which includes 130 million unique registered investors as of April 2026, focusing on fintech, digital trading, and engagement with non-resident Indian (NRI) investors.