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Crisil: NBFC Funding Squeeze Persists Despite Strong AUM Outlook

26 November 20251 min read
BANKING & FINANCECrisil: NBFC FundingSqueeze PersistsDespite Strong AUMOutlook26 November 2025safalsetu.com

Why in the news

Crisil says NBFCs have sound books and strong demand, but tight funding hurts mid-sized players most.

Key facts

  • Large NBFCs tap bond markets; smaller ones use securitisation and loan sell-downs; HFCs lean on ECBs and bonds.
  • Bank lending stalled despite the April 2025 rollback of higher risk weights.
  • Risk segments: vehicle finance, unsecured MSME, LAP.

Exam angle

  • Agency: Crisil Ratings.

Test yourself

1. Crisil expects NBFC AUM to surpass which level by March 2027?

AUM is projected to exceed ₹50 trillion.

2. Which type of NBFCs mainly struggle to get stable, low-cost funding, per Crisil?

Large players use bond markets; mid-sized ones struggle.

3. Where are early delinquencies rising, as per Crisil's report?

The three segments are vehicle finance, unsecured MSME loans and LAP.

This topic is part of Daily Current Affairs 25 November 2025 (14 topics).

All topics of the dayDay quizNovember 2025

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