The Reserve Bank of India's report indicates that Non-Banking Financial Companies (NBFCs) saw their balance sheets expand by 18.9% in FY25, reaching ₹61.09 lakh crore, driven by strong loan growth. Profitability improved for upper-layer NBFCs, though overall NBFC profits slightly decreased. Asset quality generally improved with a decline in GNPA and NNPA ratios. However, the microfinance segment experienced a notable deterioration in its financial health.