Banks and Non-Banking Financial Companies (NBFCs) are important parts of the Indian financial system. Both provide loans and financial services to individuals and businesses. However, banks and NBFCs have different ways of working, sources of funds and risk levels. This research paper compares the performance of banks and NBFCs in India. The main areas considered in this study are credit growth, profitability, asset quality and financial stability. The variables selected for the study are Return on Assets (ROA), Return on Equity (ROE), Gross Non-Performing Assets (GNPA), Net Non-Performing Assets (NNPA) and credit growth. This study is based on secondary data collected mainly from the Reserve Bank of India (RBI) and other reliable sources. The study period is from 2020-21 to 2024-25. Trend analysis, CAGR, descriptive statistics and comparative analysis can be used to study the performance of both sectors. The evidence in the available dataset shows a substantial improvement in asset quality in both sectors. Banks recorded lower GNPA and NNPA ratios by 2024-25, while NBFCs recorded higher ROA throughout the five-year dataset. The available source table does not contain complete ROE and sector-level NBFC credit-growth observations for every year; therefore, these two dimensions are retained as analytical objectives but are not assigned unsupported numerical conclusions.[1, 2]