30 percent increase in funds raised by NBFCs from fund houses

Mumbai: Non-banking financial companies (NBFCs) raised Rs 2.08 lakh crore from mutual funds in April, 30 per cent higher than April 2023, according to a report by a research firm.

RBI's stringent norms have forced NBFCs to raise funds from sources other than banks.

In April 2023, fund houses provided funds worth Rs 1.60 lakh crore to NBFCs. From the April data, it can be said that fund houses have the flexibility to provide funds to well-rated financial companies.

Lending by banks to NBFCs has slowed down as a result of stringent RBI regulations. The report also said that NBFCs are finding it relatively cheaper to get money from fund houses than banks.

Increasing risk weights on funds given by banks to NBFCs has now become a deterrent for NBFCs to get money from banks.

We feel comfortable providing finance to well-rated NBFCs.”