Synopsis:
- Mutual Fund (MF) debt exposure to NBFCs, including Commercial Papers (CPs) and Corporate Debt, remained above the Rs. 2 lakh crore mark for the fourth consecutive month touching Rs. 2.33 lakh crore in July 2024. This marks an increase of 28.8% y-o-y and 5.6% sequentially. Aggregate MF exposure to NBFCs is nearing the July 2018 level of Rs 2.64 lakh crore. Meanwhile, CPs have consistently remained above the one lakh crore mark for eight consecutive months, standing at Rs 1.31 lakh crore.
- The credit exposure of banks to NBFCs stood at Rs 15.3 lakh crore in July 2024, indicating a 12.7% y-o-y growth. This growth is despite HDFC’s exposures being reclassified after its merger with HDFC Bank. On a month-on-month (m-o-m) basis, the amount fell by 1.7%. Meanwhile, the proportion of NBFC exposure in relation to aggregate credit has reduced from 9.3% in July 2023 to 9.1% in July 2024.
- In June 2024, mutual funds’ debt exposure to NBFCs increased to 15.2% of “Banks’ advances to NBFCs,” up from 13.1% in July 2023 and 14.2% in June 2024.
