New Delhi, March 5 -- Non-banking financial companies (NBFCs) focused on gold loans are expected to maintain strong profitability, with average return on managed assets (RoMA) projected at about 4.25-4.5 per cent through this and the next fiscal, according to Crisil Ratings.

The outlook is supported by strong demand, improving operating leverage and low credit losses, despite rising competition from banks and diversified NBFCs entering the segment.

Strong Growth and Rising Competition

Aparna Kirubakaran, Director, Crisil Ratings, said, "An expansion in the lender base and intensifying competition have moderated asset yields in recent quarters for gold-loan NBFCs, though they remain higher relative to many other secured businesses."

"W...