Research Report

The overall infrastructure credit growth (banks and NBFC-IFCs) improved to 11% in FY2026 from 6% in FY2025. NBFC-IFCs reported growth of 9% in FY2026 compared to 10% in FY2025, while the banking sector’s infrastructure credit rose by 13% from 1% during this period. ICRA expects NBFC-IFCs to expand by 8-10% in FY2027, supported by the GoI’s thrust on the infrastructure sector to achieve objectives under the Viksit Bharat Vision 2047.

• Strong activity in the infrastructure sector, especially power and urban infrastructure, has coincided with the recovery in the balance sheet strength of NBFC-IFCs and the availability of relatively long-term funding at competitive rates for these entities.
  
• The reported GS3 % for NBFC-IFCs moderated to 0.6% as on March 31, 2026 from 1.2% as on March 31, 2025, driven by loan book growth, limited slippages and the resolution/recovery of a few stressed assets and write-offs.
  

Source: Financial results of NBFCs, ICRA Research; P – Projected