The money raised by non-banking financial companies (NBFCs) from mutual funds (MFs) rose by almost 30 per cent year-on-year (Y-o-Y) to Rs 2.08 trillion in April 2024, shows data from rating agency CareEdge. The MF debt exposure to NBFCs had risen by just 0.2 per cent Y-o-Y to Rs 1.6 trillion in April 2023.Analysts and NBFC executives said this increase in funding signals MFs’ comfort in taking exposure to better-rated finance firms. The regulatory nudge from the Reserve Bank of India (RBI) to banks to moderate the pace of funding to NBFCs and the narrowing gap in the cost of funds between money taken from asset management companies and banks have also contributed to the increase in funding.
Valuations in Indian markets have become reasonable: Mirae's CIO Surana
Read More
