Mutual funds have been reducing exposure to non-banking financial companies (NBFC). Debt exposure to NBFCs from funds declined about 17% on year to ₹1.4 lakh crore in November 2022, with capital market interest rates trailing bank offers in attractiveness.
An analysis by CARE Ratings showed that since February 2018, bank lending to NBFCs has tripled, while MF exposure has reduced over the past four years. If November 2022 data is compared with February 2020 numbers, bank borrowings of NBF ..
