NBFC Stocks in Focus: Non‑banking financial company stocks are in focus after the Reserve Bank of India simplified the framework for classifying upper‑layer NBFCs, a move that Kotak Securities believes will have no material impact on large listed players. Under the revised approach, any NBFC with assets exceeding Rs 1 trillion will automatically qualify as an upper‑layer entity, replacing the earlier combination of asset size ranking and parametric scoring. Kotak Securities remains constructive on the sector, noting that most large NBFCs are already subject to enhanced regulatory oversight and continue to offer meaningful upside, particularly Bajaj Finance, Aditya Birla Finance and Tata Capital, even after the recent rally.
The brokerage noted that, “we do not find any impact on NBFCs under coverage or the large listed ones. Remain assertive on the sector, with Bajaj Finance, Aditya Birla Finance and Tata Capital, among the larger players, providing meaningful upside post the rally last week.”
Upper-layer NBFCs are subject to enhanced regulatory requirements, at least for a period of five years from their classification in the layer. The RBI has classified 15 NBFCs in the upper layer as of March 2026. Tata Sons is the only unlisted NBFC from the list published by the RBI, the brokerage noted.
“The RBI had already withdrawn the detailed (October 2021) scale based regulations. This guideline had prescribed capital requirements, NPL classification for the base layer, capital adequacy guidelines, credit concentration, governance guidelines and additional criteria, which included qualification of board members, disclosures and listing within three years for upper-layer NBFCs,” the brokerage said.
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