Team Blitz India
NEW DELHI: Bank loans to non-banking finance companies (NBFCs) increased 22.1 per cent year-on-year in October, and their exposure to the sector was Rs 14.8 trillion in October 2023, according to a report by CareEdge Ratings.
Last month, the Reserve Bank of India (RBI) increased the risk weights for bank loans to higher-rated NBFCs (A and above) – a move aimed at moderating commercial banks’ exposure to the shadow banks.
“The proportion of NBFC exposure in relation to aggregate credit has risen from 9.4 per cent in October 2022 to 9.6 per cent in October 2023. On a month-on-month (m-o-m) basis, the amount rose by 4.0 per cent,” CareEdge said.
Meanwhile, the Mutual Fund (MF) debt exposure to NBFCs, including Commercial Papers (CPs) and Corporate Debt, witnessed an increase of 21.9 per cent to Rs 1.58 lakh crore in October 2023, while declining sequentially by 10.5 per cent from September 2023.
