10 Best NBFC Stocks List in India

Ever wonder how the Indian economy keeps growing, even if traditional banks aren’t able to reach every corner of the country? The answer lies within a vibrant segment of the Indian economy called the Non-Banking Financial Companies or NBFC sector. These are the silent champions bridging the financial gaps, empowering small and medium enterprises, and aiding millions of Indians in getting access to credit, loans, and other crucial financial services that were previously beyond their reach. 

So, what are the NBFCs, and what makes their shares so attractive to investors? Let us explore the exciting world of NBFCs and understand their contribution toward India’s financial growth story. 

What are NBFC Companies? 

Non-Banking Financial Companies, or NBFCs are considered to be financial institutions which are registered under the Companies Act and governed by the Reserve Bank of India (RBI). For more context, unlike conventional banks, NBFCs do not possess a banking license and thus, cannot accept demand deposits from the general public. Regardless, they are crucial in the Indian economic landscape for issuing loans, advances, asset financing, hire-purchase, leasing, and even secondary market investment in securities.

Known for their innovation and flexibility in developing financial products, NBFCs tap into underserved markets catering to small businesses in rural regions and people with limited access to credit. Their growth has been rapid, NBFCs are accounting for more than a quarter of India’s total credit as compared to one sixth a decade earlier. NBFCs have become key drivers of economic growth and financial inclusion in the country in recent years.

Top 10 NBFC Sector Stocks List in India

Company Name	Current Market Price (₹)	Market Capitalization (in ₹ Crores)	52 Week High (in ₹)	52 Week Low (in ₹)
Bajaj Finance	947	5,88,275	979	642
Jio Financial ServicesLtd.	332	2,11,120	363	199
Indian Railway Finance Corporation Ltd.	138	1,80,149	229	108
Power Finance Corporation Ltd.	427	1,40,848	580	357
Cholamandalam Investment and Finance Corporation Ltd	1,561	1,31,278	1,684	1,168
Shriram Finance	682	1,28,175	730	493
REC Limited	396	1,04,144	654	357
Bajaj Housing Finance	122	1,01,446	188	103
Muthoot Finance	2,641	1,06,026	2,692	1,665
Sundaram Finance Ltd.	5,010	55,660	5,536	3,733

Overview of the Top 10 NBFC Stocks in India

An overview of the top 10 NBFC sector stocks in India is given below:

1. Bajaj Finance

It is one of the leading non-banking financial companies of India, it has over 101 million customers spread over 3800 towns. The company provides easy consumer, home, personal, gold, and auto loans to small businesses and rural consumers. Widely known for its quick loan approvals and strong digital presence, Bajaj Finance reported a valuation of 4.16 lakh crore in assets under management (AUM) and a 19% year-on-year increase in net profit for FY25 as of March 2025. 

Along with generous dividends, the company distributed bonus shares as a reward to its investors. By prioritizing technology and customer relations, Bajaj Finance continues to grow and remains a favorite in the NBFC sector.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
34.05%	32.11%	189.11%

Read Also: Bajaj Finance Case Study

2. Jio Financial Services

It is one of the rapidly growing NBFC in India, it provides services like loans, insurance, and wealth management for customers. It is a part of the Reliance Group and headquartered in Mumbai. Using new age technology, Jio Financial Services ensures seamless service delivery and customer support from any part of India. People have easy access to finance because of Jio Financial Services’s easy to use products and strong digital platforms.
The company reported a net profit of Rs. 3.2 billion, marking strong growth for the FY25, alongside declaring its first-ever dividend. Jio Financial Services is rapidly gaining traction as an instant financial service provider for those looking for credit.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-5.17%	26.91%	26.83%

Read Also: Jio Financial Services: Business Model And SWOT Analysis

3. Indian Railway Finance Corporation Ltd

IRFC Ltd is one of the leading public sector companies in the country and is dedicated to providing financial assistance to various departments of the Indian Railways. IRFC was established in 1986, situated in New Delhi and is mostly owned by the Government of India. It is one of the public sector companies which announced the commencement of services for raising funds within the capital markets and financial institutions to aid in the procurement of railway projects, acquisition of rolling stock, and developing infrastructure.
Through leasing and financing activities, IRFC remains a vital player in India’s railway sector. IRFC was granted Navratna status in March 2025, portraying the significance of the company’s performance. The company is trusted by people and has stability and reliability which draws in investors to get exposure to invest in the growing NBFC space.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-30.68%	587.12%	450.32%

Read Also: IRFC Case Study

4. Power Finance Corporation Ltd (PFC)

It is one of the leading public sector financial institutions in India. It provides financing for projects in the power sector, including electricity generation, transmission, and distribution. It is based out of New Delhi and was set up in 1986. PFC is a major energy infrastructure development NBFC and is under the Ministry of Power. 

The company has shown strong financial performance, low NPAs, and prominent participation in project financing for public and private sector borrowers. As of early 2025, PFC has reported a market cap of over ₹1.4 lakh crore along with a good dividend yield. Due to its strong presence and consistent track record in the power sector, it is a preferred investment for those seeking growth and stability. 

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-21.77%	395.57%	534.67%

5. Cholamandalam Investment & Finance Company Ltd

One of India’s most prominent Non-Banking Financial Companies (NBFCs) that delivers comprehensive services like automobile loans, home loans, property loans, and financing for SMEs. It is associated with the Murugappa Group, headquartered in Chennai. The company has over 1,600 branches across the country and manages assets above ₹2 lakh crore. 

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
9.56%	145.47%	644.66%

6. Shriram Finance

It is the one of the largest retail Non-Banking Financial Company (NBFC) in India. It provides loans for commercial vehicles, two-wheeler and car purchases, housing, gold, and small business loans. Founded in 1979 and based in Chennai, the company has more than 3,200 branches and assets of ₹2.63 lakh crore under management. Shriram Finance serves millions of customers, even in rural and unbanked areas. It is the preferred choice for most investors in the NBFC sector due to its strong customer base and profitability.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
20.44%	163.79%	368.12%

Read Also: Shriram Finance Case Study

7. REC Limited (Rural Electrification Corporation Limited)

It is one of the most prominent public sector financial companies in India, focusing on the financing power projects for generation, transmission, and distribution of electricity across India. Based in New Delhi, REC is instrumental in the development of electricity infrastructure in India and actively works with the government and private sector companies on energy projects. The company aims to provide ₹2.5 trillion for renewable energy projects till 2030.

The company also gives dividends, making it popular among investors seeking passive income . Investors looking to finance infrastructure in India will appreciate REC Limited for its strong history and strategically important position in India’s energy landscape.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-35.39%	305.87%	395.11%

8. Bajaj Housing Finance

A prominent lender in India’s housing finance sector providing home loans, loans against property, and lease rental discounting. It is a part of the Bajaj Finserv group and based in Pune. The firm is known for providing fast and reliable loan approval procedures due to its technology. 

In FY25, Bajaj Housing Finance reported strong growth with net profit increasing by 25% to ₹2,163 crore and a year-over-year 26% growth of over ₹1.14 lakh crore in assets under management. The company’s gross NPAs stood at an impressive low of 0.29% as of March 2025, further it has operational efficiency and robust asset quality. Bajaj Housing Finance remains a good choice for investors looking for good returns and home buyers seeking reliable lenders.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
-19.30%	-19.30%	-19.33%

Read Also: 5 Best Housing Finance Stocks in India

9. Muthoot Finance

It is India’s biggest gold loan Non-banking Financial Company, with its corporate office in Kochi and more than 4,800 branches in parts of the country. In addition to gold loans, Muthoot Finance has diversified its portfolio to include personal loans, business loans, money transfer services, insurance distribution, microfinance, and housing finance. Its business model focuses on quick disbursal, minimal documentation, and customer-friendly policies, making it a preferred choice among lower and middle-income households. 

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
45.27%	154.23%	142.13%

10. Sundaram Finance Ltd.

It is among the top rated NBFC in India and is located in Chennai, Tamil Nadu. Sundaram Finance deals strongly in vehicle and equipment loans, home loans, and also manages assets for both retail and corporate customers. It was started in 1954 and is well known for its strong management, robust asset quality, and regular dividend payouts. 

Even though the NBFC sector faces challenges, Sundaram Finance maintained a healthy growth in asset under management, strong asset quality and high capital adequacy ratio. It is termed to be a stable company making it attractive for the investors in the financial sector of India.

Know the Returns: 

1Y Return (%)	3Y Return (%)	5Y Return (%)
10.86%	169.73%	283.97%

Key Performance Indicators 

Company Name	Basic EPS (₹)	Net Profit Margin (%)	ROE (%)	ROCE (%)
Bajaj Finance	268.94	24.05	17.20	46.79
JIO Financial ServicesLtd.	2.54	59.70	1.30	1.20
Indian Railway Finance Corp Ltd.	4.98	23.94	12.34	49.98
Power Finance Corp Ltd.	69.67	28.65	19.52	65.86
Cholamandalam Investment and FIn Corp Ltd	50.72	16.48	18.00	75.97
Shriram Finance	50.82	22.86	16.91	17.30
REC Limited	60.20	28.18	20.26	68.85
Bajaj Housing Finance	2.67	22.58	10.84	43.60
Muthoot Finance	132.84	26.47	18.15	47.55
Sundaram Finance Ltd.	170.53	21.36	14.24	49.87

Advantages of Investing in NBFC Stocks

The advantages of investing in NBFC stocks is given below:

• Ability To Reach Untapped Areas : NBFCs grant credit and give financial assistance to people as well as small businesses that are often neglected by traditional banks and this promotes NABARD’s financial inclusion policies, thus propelling the economy. 
• Better Interest Margins : NBFCs have the opportunity to charge higher loan rates relative to banks, which means greater net interest income and profits. 
• Varied Services : They provide a variety of services such as personal loans, motor vehicle loans, microfinance, and so on, which is beneficial since risks are diversified.
• Less Rigid Operations and Quicker Expansion : Due to less stringent regulatory laws compared to banks, NBFCs are able to grow their operations and sell innovative financial products. 
• Significant Growth Opportunities : Investments in NBFCs is a lucrative opportunity for investors seeking stocks with growth potential as they are expanding rapidly and often outperform banks in profitability and asset growth. 

Disadvantages of Investing in NBFC Stocks

The disadvantages of investing in NBFC stocks is given below:

• Regulatory Risks : The NBFC sector faces the regulatory risk due to frequent changes made by the RBI, which can affect profit margins and affect business models. 
• Interest Rate Sensitivity : The stock value of NBFC is very sensitive to changes in interest rates. Increased interest rates would result in greater borrowing costs which, in turn, would hurt profits.
• Credit Risk and Asset Quality : NBFCs are likely to incur higher defaults compared to banks.
• Market Fluctuations and Liquidity Issues : NBFC stocks tend to be quite volatile, and their prices may plummet during market downturns or periods of liquidity pinch. 

Conclusion

Investments in NBFC stocks help diversify portfolios as well as grow your wealth owing to new and innovative financial products provided by them. These stocks can be adversely affected by regulatory risks, changes in interest rates, credit risks, and more. One should analyze their advantages and disadvantages to capture the long-term potential of these stocks and can be a part of the expanding NBFC sector. 

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