#AD
Page Contents
India’s inclusion drive gains fresh ground
India continues to make progress in ensuring that formal financial services are accessible to a wider population. As of March 2025, the Reserve Bank of India’s Financial Inclusion Index (FI-Index) moved up to 67.0 — an improvement from 64.2 recorded a year ago. The increase reflects not only broader access but also greater usage and improved quality of financial services across the country.
The FI-Index evaluates financial inclusion across banking, insurance, investments, pensions, and postal networks. It assigns a score between 0 and 100, where a higher number signals more inclusive access to formal financial tools. Importantly, this year’s rise was largely driven by deeper engagement — more people actively using and benefiting from formal channels, rather than just signing up for accounts.
Wider access fueling credit demand
As more individuals gain access to financial products, demand for credit has picked up across income groups. Whether it is a personal loan for medical needs, finance for a two-wheeler, or working capital for a small trader, credit is being sought and used more than ever. Digital platforms and NBFCs have played a large role in extending this reach, especially in Tier 2 and Tier 3 towns.
Flexible loan structures, along with quick disbursals, have made borrowing easier. Consumers today are more comfortable using EMIs for essential purchases and services. The data suggests a cultural shift, where responsible credit is no longer seen with scepticism but as a tool to build financial resilience.
A key beneficiary of this trend is Bajaj Finance, one of India’s largest non-banking financial companies. The firm has carved a niche in consumer lending, SME finance, and personal loans. As credit usage expands, so does its potential customer base.
The Bajaj Finance share has remained on investor radars due to its steady growth and strong risk management. Despite rising competition in the space, Bajaj’s ability to innovate while keeping defaults in check makes it a standout player. Its digital loan processing, robust customer servicing, and product diversification have all contributed to its market leadership.
Retail investing grows through demat accounts
Beyond borrowing, Indians are also showing increased interest in building wealth through formal investments. The number of people opening demat accounts continues to climb. With a smartphone and a few ID proofs, users can now open accounts and start investing within minutes.
This shift has brought finance-sector companies into sharper investor focus. Whether through direct equity, ETFs, or mutual funds, finance stocks — including banks, NBFCs, and fintechs — are gaining weight in retail portfolios. The appeal lies in their growth potential, dividend history, and overall alignment with India’s development story.
Why finance stocks are drawing interest
Investors are increasingly recognising that stocks and trading offer more than just cyclical plays. Strong fundamentals, access to expanding markets, and relatively stable returns have made this segment attractive for long-term holding.
NBFCs in particular have an edge in agility and customer reach. Fintech-backed lenders are tapping into data analytics to offer personalised loan products. Traditional banks, too, are digitising quickly. Together, these players form a dynamic ecosystem — one that is helping more Indians access capital and manage their finances effectively.
Government and RBI backing continue
India’s progress in financial inclusion has also been supported by consistent policy push. Programmes like Jan Dhan Yojana, along with Aadhaar-linked services, have helped bring the unbanked into the formal system. Meanwhile, digital public infrastructure, such as UPI, has made it easier to transact and track financial activity.
The RBI, on its part, has kept a strong focus on protecting customer interests and ensuring responsible lending. Periodic updates to credit norms, efforts to boost grievance redressal systems, and ongoing supervision have all contributed to building trust among users.
Education is making the difference
One factor that cannot be overlooked is the growing awareness among the public. Efforts by financial institutions, regulatory bodies, and education portals have helped people better understand financial tools. The idea of comparing loan terms, building a credit score, and starting a SIP is now part of everyday conversation in many households.
This shift in financial behaviour is also reflected in the FI-Index’s improved quality score. It suggests that people are not just opening accounts for the sake of it — they are learning how to use them to their advantage.
The road ahead
India’s financial services industry is only at the beginning of a long growth curve. Demand for credit is likely to stay strong, driven by rising incomes and greater aspirations. On the investment side, as more individuals open demat accounts and explore asset classes beyond fixed deposits, market participation will continue to broaden.
Stocks in the finance sector are well-positioned to benefit from this expansion. For investors looking to gain exposure to the India growth story, this segment offers both growth and stability.
Among the top picks remains Bajaj Finance share, often viewed as a bellwether for consumer credit and NBFC health. As formal finance touches more lives, companies like Bajaj — backed by technology, reach, and experience — are set to play an even bigger role in shaping how India saves, spends, and borrows.
