New Delhi, May 26 -- India's government-owned non-bank financial institutions are expected to grab more market share in the coming year or two, according to S&P Global Ratings. It projected a sustained strong growth for the government-owned non-bank financials.

According to a report titled "Indian Government-Owned Financial Institutions: In The Fast Lane," these firms' roles in supporting economic development will strengthen their franchises.

"Financial services is one of the four strategic sectors in India. As such, government-related entities (GREs) in the sector are more likely to benefit from government support," said S&P Global Ratings credit analyst Deepali Seth-Chhabria.

"This is particularly so for those that play policy roles....