Are stocks of non-lending financial institutions a good investment option?

These new-age listed NLFIs, Centrum Wealth says, provides an opportunity to investors to participate in the growth arising out of changing face of Indian finance industry.

After creating enormous wealth for investors over the past two decades, the banking and non-banking financial institutions (NBFCs) have come under tremendous pressure, owing to mounting non-performing assets (NPAs). Especially post RBI measures to disclose stressed assets and early recognition of NPAs, the growth in profitability of the banks (especially public sector) and NBFCs has become slower than the previous years.

However, amid this slowdown, a new investment theme is gaining ground, and if experts are to believed, it provides a good opportunity for investors to create wealth. Non-Lending Financial Institutions (NLFIs) have slowly and gradually grown in size and