look news india
New Delhi: Funding provided by asset management companies to non-banking financial companies (NBFCs) has increased in the last six months. In November last year, the Reserve Bank of India raised the risk surcharge on loans given by banks to non-banking financial companies, after which NBFCs will have to raise funds from other sources.
According to data from Caris Ratings, loans to NBFCs through commercial papers (CPs) and corporate loans (CDs) due in October 2023 have risen to nearly Rs. 2.1 lakh crore from Rs. 1.6 lakh crore at end-May 2024.
Loans to NBFCs, including commercial paper and corporate loans, grew 22 percent over the same period last year to Rs. 2.09 lakh crore. Loans disbursed for the second consecutive month exceeded Rs 1,000 crore. It was more than Rs 2 lakh crore.
In May, the funds provided to NBFCs by mutual funds through investments in commercial papers stood at Rs. 1.15 lakh crore. Earlier this level was almost 5 years ago in May 2019. The rating agency said that the exposure to commercial papers has been above Rs. 1 lakh crore for 6 consecutive months.
As far as the funds received by financial companies from banks are concerned, according to the Reserve Bank of India, it increased by 16 per cent to Rs 15.6 lakh crore in May 2024 as compared to the same period last year.