Apr 15 (BNP): Non-banking financial companies (NBFCs) in India are expected to depend more on bank borrowings in FY27 as lower interest rates make bank funding more attractive, according to a rating agency report.

The report noted that the share of bank borrowings in overall NBFC funding rose to about 43% in FY26, supported by strong lending activity in the second half of the year. This share is likely to increase further, reaching up to 45% in FY27.

With banks offering comparatively cheaper loans, NBFCs are gradually shifting away from debt capital market issuances, which are expected to see slower growth in the coming period.

Overall, the trend reflects a changing funding mix in the NBFC sector, with bank credit playing a larger role in meeting financing needs.