MF funding to NBFCs hits record Rs 2.77 trillion in May 2025: CareEdge

Mutual fund exposure to NBFCs rose 32.5% YoY to record Rs 2.77 trillion in May 2025, driven by CPs and corporate debt, while bank credit to NBFCs fell 0.3%

Mutual fund (MF) debt exposure to non-banking financial companies (NBFCs) soared 32.5 per cent on year in May, hitting a record high of ₹2.77 trillion.

 

It is in contrast to bank funding to NBFCs which shrank by 0.3 per cent on year to ₹15.62 trillion in May, according to CareEdge ratings.

 

The debt funding from mutual funds, which includes commercial papers (CPs) and corporate debt, remained over the ₹2 trillion level for 14 consecutive months. The previous highs were ₹2.69 trillion in April 2025 and ₹2.64 trillion in July 2018, rating agency data showed.