2025年上半年印度私募信贷市场研究报告（英文版）-EY安永

PrivatePrivatecreditH12025updateExecutivesummary1.Macroeconomicoutlook2.Analysisofcreditdeploymentandgrowth3.Regulatoryandotherdevelopments4.Newfundsetupanddealactivity5.Inthespotlight6.EYprivatecreditpulsesurveyLeadershipcontacts-bysolutionPrivatecreditPrivatecreditinIndia:H12025Update3介4PrivatecreditinIndia:H12025Update介Indiaentered2025withrenewedeconomicresilience,aseasingglobalinflation,softeningcrudeprices,andasupportivemonetarycyclehelpedcushionexternalvolatility.TheFY25realandrobustfiscalspending,evenasindustrialoutputandexternaltradelagged.WithCPIinflationfallingto2.8%byMay,cuttingcycle,shiftingtoaneutralstance.Againstthisbackdrop,India’sprivatecreditmarketwitnessedasharpspikeindealvalueinH12025,driven,toalargeextent,byonerecord-breakingtransaction.WhiletotaldeploymenttouchedH12024andcloseto3xsurgewaslargelyattributabletotheUS$3.1billionraisedbyPorteastInvestment(ShapoorjiPallonGroup),thelargestonshoreprivatecreditdealeverinIndia.TheabovefiworthlessthanUS$10million,dealsconcludedsolelybyforeignbanksandoffshorecreditraises,whichwouldsignificantlyenhancethesizeofthemarket.Excludingtheoutlier,privatecreditdealactivityinH12025reflectedamoremeasured,yetbroadercreditlandscape.Whileoverallcreditdeploymentbybanksslowedduetoheightenedrisksensitivityandtighterunderwritingincapital-intensivesectors,goingtobenefitfromtheRBI’srecentreductioninriskweights,allowingthemtomaintainstronglendingmomentum,especiallyinretailandSME-focusedinfrastructure,realestate,andspecialsituationscontinuedtofacefundinggaps.Thisvoid,combinedwithstabilizinginterestrateexpectationsandimprovedmacroconfidence,fueledsustaineddemandforbespokeprivatecreditsolutions.Asaresult,institutionalinvestorssteppedintounderwritecomplex,large-tickettransactions—reinforcingprivatecredit’spositioningasastructurallycomplementarycapitalsourceamidshiftingcreditdynamics.InfrastructureledprivatecreditactivityinH12025,followedbyrealestateandhealthcare.Appetiteforscaleheldsteady,withdealsoverUS$100millioncomprising18%ofdealvolume,mirroringCY24levels,andunderscoringsustaineddemandforstructuredcapitalsolutions.Nearly17%ofthecapitalraisedbyborrowersinHwasdeployedtowardsforward-lookinginitiatives,includinggrowthcapital,capacityexpansion,andstrategicacquisitionsofcompanies,equitystakes,orland,underscoringameasuredreturninbusinessconfidenceandlong-termplanningamidastill-selectivelendingenvironment.GlobalcapitalremainedtheprimarydriverofIndia’sprivatecreditinflowsinH12025,contributingthemajorityofcapitaldespitelowerdealparticipation.Thisrealignedwiththethree-yeartrend,whereglobalfundshaveaccountedfornearly55%oftotaldeployments.ThismarksareversionfromH22024,whenIndianfundstemporarilyledthe5PrivatecreditinIndia:H12025Update5capitalshare.Therealignmentreflectsareturntostrategicsegmentation,withglobalplayersanchoringlarge-structuredtransactions,anddomesticcreditfundstargetingmid-marketgrowthandopportunisticspecialsituations.CreditgrowthmoderatedinH12025,withlendingturningmildlynegativeamidelevatedriskaversionanddelayedtransmissionofmonetaryeasing.Theconstraints,butdemandrecoveryhasbeenwhilemutedinunsecuredretailandlargecorporates.Thelendinggrowthtothelargecorporateindustrieshasgraduallymovedupby~6%inthepasttwoyearswhilelendingtotoanchorwholesalecreditgrowth,however,thislending,indicatingbroaderparticipation.ThetotaldeploymentofmutualfundsincorporatedebtTheJune2025FinancialStabilityReport(FSR)underscoresthesystem’sstrongcapitalbuffersandimprovingassetquality,whilealsonotingpocketsofvulnerabilityinunsecuredretailandmicrofinance.Overall,thecreditecosystemremainsfundamentallyresilient,withprivatecreditplayinganincreasinglycomplementaryroleinbridgingfundinggapsandcateringtobespokeWhilenear-termmacroandcreditriskshaveeased,sustainingmomentumwilldependontimelymonetarytransmission,arevivalinprivatecapex,andcontinuedfiscalprudenceamidexternalimbalances.Partner&Head,DebtandSPartner,DebtandSpeciSeniorAdvisortoEr0101outlookPrivatecreditinIndia:H12025Update介7PrivatecreditinIndia:H12025Update7Thefirsthalfof2025markedaphaseofcautiousoptimismfortheglobaleconomy,underpinnedbymoderatinginflation,fallingcrudeprices,andcontinuedmonetarypolicyrecalibrationacrosskeyeconomies.India,whilenavigatingtheglobalheadwinds,maintaineditsrelativemacroeconomicresilience.However,high-frequencyindicatorspointsupportedbyrobustservicesandfiscalprudencebutconstrainedbymutedindustrialoutput,weakeningcreditgrowth,andexternaluncertainties.GlobalgrowthexpectationshavemoderatedmarginallythroughH12025,withtheIMFandOECDrevisingtheir2025growthprojectionsto2.8%andconservativeoutlookat2.4%.Theseadjustmentsreflectpersistentgeopoliticaltensions,tradefrictions,notablyescalatedUStariffs,andthedeflationaryimpactoftightercreditinadvancedeconomies.TheWorldBank’sJune2025update65/bbl,fortheyear,followingsharpdeclinesinMaysupply.Ontheinflationfront,headlineinflationhasmoderatedacrossmajoreconomies,enablingcentralbankstopivotcautiously.InIndia’scontext,thisglobaldisinflationaryenvironmentprovidedtailwindstodomesticmonetarypolicyeasing,supportinggrowthmomentum.impressive7.4%expansioninQ4FY25,markistrongestquartersincethepreviousfiscal.ThesecondadvanceestimatesbytheMinistryofStatisticsandProgrammeImplementation(MoSPI)alsoprojectrealGDPgrowthforFY25at6.5%,withimplicitexpectationsof~6.3–6.5%forFY26,supportedbyastableinflationtrajectoryandrobustfiscalspendinginearlyFY26.High-frequencyindicators,however,revealapatchyrecovery.TheManufacturingPMIremainedstrongthroughoutH12025,reachingan8-monthhighof58.1inMarchandtouching58.2inApril,beforeheldfirmlyabove58,indicatingrobustactivityintheservicessector,reaching58.8inMay,itshighestsincemid-2023.Yet,theIndexofIndustrialProduction(IIhighlightedsofterunderlyingdemand.IIPgrowthslippedtoasix-monthlowof2.7%inApril,followingfullyearFY25,IIPgrowthaveraged4.0%,downfrom5.9%inFY24,underscoringtheneedformorebroad-basedindustrialrecovery.forcredit-ledrecovery1IndiasawasignificantsofteningofinflationarypressuresinH12025.CPIinflationfellsteadilyfrom4.3%inJanuary2025to2.8%inMay2025,itslowestinoversixyearinflationremainedanchoredintheindicatinglimitedspilloversfromfooddisinflationtobroaderprices.WPIinflationturnednegativeinJune2025at-0.13%,downfrom0.39%inMay,itsfirstdeflationaryprintthisyear.Thedeclinewasledbyfallingpricesinfoodarticles,fuelandpower,andbasoverallWPIindexdroppedto153.8inJunefrom154.1inMay,reflectingcontinuedsofteninginInresponsetothisbenigninflationenvironment,theMonetaryPolicyCommittee(MPC)initiatedarate-cuttingcycleforthefirsttimesinceMay2020.TheFebruaryandApril,andafurther50bpsinJunebringingitdownto5.5%,accompaniedbyashiftinpolicystanceto‘neutral’.1IMFWorldEconomicOutlook,April2025;OECDEconomicOutlook,May2025;UnitedNationsWorldEconomicSituationandProspects,April2025;WorldBankCommodityMarketsOutlook,June2025;MinistryofStatisticsandProgrammeImplementation(MoSPI),Q4FY25GDPDataRelease,May2025;IHSMarkitPMIReports,January–June2025;OfficeoftheEconomicAdviser,MinistryofCommerceandIndustry(WPIData),May2025;ReserveBankofIndiaMonetaryPolicyReports,February&April2025;RBISectoralDeploymentofBankCredit,April2025;ControllerGeneralofAccounts,UnionGovernmentAccountsApril2025.MinistryofFinance,UnionBudgetFY25&FY26Data;DGCI&S,MinistryofCommerce(TradeStatistics),May2025.NSDLandRBIBulletin,CapitalFlowsDashboard,June2025;WorldBankIndiaCountryUpdate,June2025.DepartmentforPromotionofIndustryandInternalTrade(DPIIT),FDIStatistics,April–May2025;MinistryofDefence,AnnualProductionReportFY25InterimUpdate,May2025;EuropeanCommission&DepartmentofCommerce,India-EUTradeTreatyAnnouncement,March2025.RBIExchangeRateDatabase,May2025;BSE/NSEMarketReportsandSEBIPrimaryMarketReview,H12025.GrowthingrossbankcreditmoderatedconsistentlythroughH12025,reflectingbothtighterriskunderwritingandsofterdemand,withthefull-yearFY25averagegrowthat11FY24.Whilelowerinterestratesarelikelytorevivecreditdemandgradually,themoderationinbanklendingcouldreflectearlysignsofbalancesheetconservatismandre-evaluationofsectoralexposures,particularlyinthebackdropofindustrialslowdownandglobalcapitalflowvolatility.Thatsaid,therollbackofriskweightsanddefermentofstrainandreviveNBFC-linkedcreditflowinFY26.alreadytranslatingintolowerlendingrates,especiallyforrate-sensitivesegmentslikehousing,creditdemandremainsuneven,withlargecorporatesstillrelyingoncapitalmarkets,suggestingearlysignsofdivergenceintransmission.Retailaareexpectedtobenefitmoremeaningfullyasliquidityflowsrealigntowardthesesegments.India’sfiscalpositionexhibitedcommendabledisciplineinH12025.TheFY25fiscaldeficitwasestimates.Therevenuedeficitalsoimprovedto1.7%,betterthantheearlierprojectionof1.9%.12.9%increaseindirecttaxes,whileindirecttaxcollectionsmoderatedto4.2%growth.Meanwhile,governmentexpendituregrowthwassubduedat4.8%,reflectingcautiousdeployment,thoughcapitalinApril2025,signalingarenewedcapexpushatthestartofFY26.2AheadoftheAugust2025GSTCouncilmeet,expectationsofstructuralraterationalizationhaveresurfaced,withdiscussionsaroundmergingtconsidered.Thesemovesaimtosimplifycompliance,boostconsumption,andcreateamorestableindirect2RBIStateoftheEconomyReportJune20253RBIStateoftheEconomyReportJune20254https://www.fpi.nsdl.co.in/Reports/Yearwise.aspx?RptType=6taxregimepositiveforlong-termcreditgrowthandunderwritingclarity.The2025UnionBudget’spersonalincometaxcutsreflectabold,demand-sidepushtoreigniteconsumption-ledgrowthinasluggishmacroenvironmentmarkedbylowIIPandcontinuingglobalfastest-growingconsumecompliancethroughthenewregime,thegovernmentisnotjusthandingouttaxreliefbutstrategicallyunlockingannualconsumerspendingpotential.Whiletherevenuehitmayraisefiscalconcerns,theanticipatedGDPupliftsignalsacalculatedtrade-off,i.e.,short-termrevenuesacrificeformedium-termgrowthmomentum,settingthestageforamoreconsumption-driveneconomiccycle.TheUniongovernment’scapitalexpenditureroseto20%ofthebudgetestimateinApril-MayFY26,sustained,thisfront-loadedcapitalexpenditurecouldbecomeacriticaldriverofgrowthrevivalinH2FY26,especiallyifcoupledwithsupportiveprivateinvestmentactivity.TheexternalsectorpresentedamixedpictureinH12025.MerchandisetradedeficitwidenedtoUS$26.4billioninApril2025,itshighestinsixmonths,beforeeasingtoUS$21.9billioninMay.Tdrivenbyasurgeinimports,especiallygoldandoil.Exportperformancewasvolatile,with(-)10.9%contractioninFebruary,abriefrecoveryinMarch,followedagainby(-)2.2%contractionglobaltradeuncertaintiesandcurrencyvolatility.Onthecapitalflowsside,amidhigheroutwardFDIandreducedrepatriation,FDIsturnedpositivewithinflowsofUS$3.9billioninApril2025,morethandoubleofApril2024levels,afteroutflowsofUS$5.3billioninFebruary2025andUS$1.1billioninMarch2025.3Keyoutwardsectorsincludedutilitiesandfinancialservices,withmajordestinationsbeingturnednegativewithoutflowsofUS$6.5billioninH12025,followingUS$8.8billionininflowsinH22024.4Withglobalrisk-offsentimentandstrongerUSyieldspersistingthroughMayandJune,foreigninvestmentflowshavecontinuedtoshowsignsofvolatility,raisingthelikelihoodofunevencapitalmovementintoQ2FY26.介8PrivatecreditinIndia:H12025Update介Asof27June2025,India’sforeignexchangereserves,managedbytheRBI,stoodatUS$702.78billion,reflectingadeclineofUS$2.11billionfromtheall-timehighofUS$704.89billionrecordedon27September2024.Thisdeclinewasprimarilydrivenbyafallinforeigncurrencyassets(FCA),thelargestcomponentofthereserves,whichdroppedfromUS$616.15billiontoUS$594.82billion—adecreaseofUS$21.33billionor3.46%.ThecontractioninFCAmaybeattributedtoactiveRBIinterventionsintheforeignexchangemarkettomanagevolatilityintheIndianRupee,alongwithpotentialvaluationlossesduetocurrencymovementsagainsttheUSdollar.Ontheotherhand,goldreservesregisteredasharprise,increasingfromUS$65.80billioninSeptember2024toUS$84.50billioninJune2025—anuptickofUS$18.71billionor28.44%.Thissurgelikelyreflectsacombinationofhigherglobalgoldprices,RBI’sstrategytodiversifyreserveholdings,andashiftinsafe-havenpreferenceamidgeopoliticaluncertainty5.relativeresilienceagainsttheUSDollarcomparedtopeeremergingmarketcurrencies.Thisreflectsbothahealthymacrobufferandanincreasingrelianceondomesticcapitaltooffsetexternalpullbacks.transitionIndiaentersH22025withacautiouslyoptimisticmacroeconomicoutlook.GrowthforFY26iscontinuedpolicyeasing,improvingconsumption,andfront-loadedgovernmentcapex.InflationisexpectedtoremainwellwithintheRBI’stargetband,withtheheadlineCPIinflationforecastforFY2025-26beingCPIinflationisexpectedtoaverage3.8%in2025-26and4.2%in2026-27.6Marketsreflectameasuredpausestabilizedlargecaps,subduedriskappetite,yetrecordSIPinflowsshowretailresiearningsrecoveryandrateeasing,H2CY2025maytriggerrenewedtraction.tradetensionsandMiddleEastconflictsremainontheradar,marketsappeartohavelargelypricedintheirnear-termimpact.Domestically,thekeychallengesnowlieinsustainingcapexmomentum,crowdinginprivateinvestment,andtranslatingpolicyeasingintoeffectivecredittransmission.ForIndia’sfinancialindustry,especiallycreditproviders,thefirsthalfof2025presentsashiftfrommanaginginflationandliquiditytonavigatingslowercreditgrowthandevolvingsectoralrisks.Inthisevolvingcontext,privatecreditplayersmustremainagile,withenhancedfocusonborrowerquality,sectoraldispersion,andmacroeconomicsignaling.Aconfluenceofmacrotailwindsisnudgingcreditgrowthupwardrangingfromfallinglendingrates,easinginflation,andstablecrudepricestofiscalconsolidationandresilientGSTcollections.Thegovernment’scapexpush,improvingcorporatebalancesheets,andrecoveliftingborrowersentiment.Asconfidencebuildssteadilyreturningtotherealeconomy.5RBIreportonforeignreservesdated27June2025and27Sept2024(.in/scripts/WSSViewDetail.aspx?PARAM1=2&TYPE=Section)6RBIStateoftheEconomyReportJune202599PrivatecreditinIndia:H12025Updatedeploymentandgrowthdeploymentandgrowth0202AnalysisAnalysisofcredit10PrivatecreditinIndia:H12025Update介11PrivatecreditinIndia:H12025Update117India’smonetarylandscapeunderwentsignificantshiftsinH12025amidglobalvolatilityandchangingliquidityconditions.CreditdeploymentbySCBsmoderatedvisibly,withFY25creditgrowthdeceleratingto11%andthecreditimpulse8turningnegativeto(-)11.3%,clearlyindicatingthatthepaceoffreshlendinghasweakenedcomparedtopreviperiods.Moreover,theIndianfinancialsystemexperiencedashiftinliquiditydynamics,withthebankingsystemmovingfromsurplusliquidityinthefirsthalfofFY25toadeficitinthelatterpart,beforereturningtosurplusbyMarch2025.TheRBItookdecisivestepsfromcuttingratestorelaxingreservenorms,tokeepcreditflowingandsafeguardfinancialstability.ItreducedtheCR50bpsto4.0%inDecember2024andfurther,inJune2025,reduceditby100bps,bringingitdownto3.0%,tocombattheemergingliquiditypressure,arisingfromtaxoutflows,increasedcurrencydemand,andcapitalflowvolatility.TheMonetaryPolicyCommitteebeganarate-cutcycleforthefirsttimesinceMay2020,loweringthereporateby25bpseachinFebruaryandApril,anadditional50bpsinJunebringingitto5.5%asofJune2025.Alongside,thepolicystanceshiftedto‘neutral’,amoveaimedatstimulatingcreditofftakeandimprovinginvestorconfidenceheadingintoFY26.newregulatoryframeworkforinfrastructurelending,effective1October2025,underwhich,provisioningrequirementsforloanstounder-constructioninfrastructureprojectswillbereducedfrom5%to9Themoveaimstorevivecreditflowstotheinfrastructuresector,whichcontracted0.8%overthepastyear.Thereducedprovisioningreflectcalibratedregulatorystance,acknowledgingthelonggestationperiodsandcapital-intensivenatureofsuchprojects.Theloangrowthslowedduringlate2024andearly2025aftertheRBIincreasedriskweightsoncertaincategoriesofconsumercreditsandonbanklendingfrom1April202510,theRBIreverseditsFY24risk-weighthikeforNBFCexposuresrestoringpreviouscapitalnorms.AsperratingagencyICRA11,thispolicyreversal,alongsideliquiditycoverageratiodeferment,shouldrelievecapitalconstraints,enablingbankstoscaleblendingtohigher-risksegmentsandresumebroadercreditflow,particularlyinconsumerfinanceandNBFC-sourcedportfolFY24.However,thewrite-offstoGNPAratiorose31.8%inFY25,upfrom29.5%inFY24suggestingthatpartoftheassetqualityimprovementisbeingdrivenbyaggressivewrite-offs,especiallyinunsecuredretailbooks.12AgriculturesectorcontinuedtorecordforthehighestGNPAratio,whereasintheindustrialsector,assetqualityexhibitedsustainedimprovementacrossallsub-sectors.7RBIFSRReportJune20258Creditimpulsemeasuresthechangeinnewcreditasapercentageoflastyear’sGDP,indicatingcredit’simpactoneconomicgrowth.ApositiveimpulsesignalsfastercreditgrowththanGDP,whileanegativeoneimpliesslowerorcontractingcredit.9https://www.epcworld.in/rbis-strategic-calibration-a-dual-thrust-to-liquidity-management-and-infrastructure-credit10.in/rdocs/notification/PDFs/NT120A97A4D3CBCCE4AEBAAE1B7DB7DCF177D.PDF11StatementofMr.AnilGupta,seniorVicePresident,ICRAtoTheHinduon25FebruaryMarch2024(a)March2025(b-a)2412662512013414305324194254583318019010Trade11191381955627Others2180210305346006662069272Total(a+b+c+d)1,8192,016197Note:1.Tradeincludeswholesaletrade(foodprocurementcreditoutsidefoodcreditconsortium)andretailtradecredit.2.Othersincludetransportoperators,computersoftware,hotels,restaurants,professionalservices,aviation,shipping,mutualfund(MFs),bankingandfinanceotherthanNBFCsandMFsandotherserviceswhicharenotindicatedintheaforementionedcategoriesAsofMarch2025,SCBcreditoutstanYoYtoUS$2.02trillion,drivenbysteadygrowthinagriculturallending(+10%)supportedbyruraldemandandgovernmentprocurement,strongurbanconsumption,housingdemand,anddigitalcreditpenetration,andmoderategrowthinindustrialcredit(+8%).Withinservices,lendingtotradeandthepost-pandemicreboundindiscretionaryspendingandlogisticsactivity.ThechartbelowdepictsthetrendinthebankingcreditgrowthrateforlargeindustriesandMSMEsoverthelast10years.4.2%CY2016CY2017CY2018CY2019CY2020CY2021CY2022CY2023CY2024CY2025Source:RBISectoralDeploymentofCreditReports13RBI–Dataonsectoraldeploymentofbankcredit介12PrivatecreditinIndia:H12025Update介13PrivatecreditinIndia:H12025Update1352.0%42.0%32.0%22.0%39.8%3.2%CY2016CY2017CY2018CY2019CY2020CY2021CY2022CY2023CY2024CY2025 Thecreditgrowthrateforthelargeindustriessectorlasttwoyears.Theselargeindustriesrepresentremainingattheatthesamelevelhistorically.From2020onwards,MSMEcreditgrowthwitnessedastrongmomentumfromamodest3.2%inCY2020toapeakof39.8%inCY2022,drivenbypolinterventionslikeEmergencyCreditLineGuaranteeSchemeandrecoveryindemand.Whilethegrowthratehasmoderatedsince,itremainshealthyinCY2023(12.9%),CY2024(14.2%),andCY2025(11.8%),indicatingsteadycreditflow.promptedbankstoadoptamorecautiouslendingposture.Consequently,unsecuredretailcreditgrowthslowedto11.6%(September2023–March2025)froma27%CAGRearlier,whilebankcredittoIncontrast,MSMElendingoutperformedoverallnon-foodcreditgrowth.Thissegmentsawasteadyriseincreditshare,supportedbyimprovedassetquality-exposure,andextensivecoverageundercreditsharpheadwinds.Risingstressaactiveborrowersledtoadropinoverallcredittothesector,withfallingSCBlending.Overall,H12025markedaclearportfoliorebalancingbybanks—retreatingfromhigh-riskretailandconsolidatingaroundlower-risk,guaranteedMSMEandselectservicesegments.Thibyassetqualityconcernsandregulatoryconstraints,createswhitespaceforprivatecreditandalternativelenderstoexpandselectively,particularlyinconsumerfinance,NBFCfunding,andstructuredInthefirsthalfof2025,theRBItookseveralstepstoimproveliquidityinthemarket.Itcutthereporateandrelaxedprovisioningnormsforunder-constructioninfrastructureloans,aimingatmakingiteasierforbankstolendandsupporteconomicactivity.Indiascreditecosystem,supportedbystrongcapitalbuffers,healthyinterestmargins,andimprovingassetquality.AsofMarch2025,thesystem-levelcapitaltorisk-weightedassetsratio(CRAR)starobust25.8%.InNovember2023,RBIincreasedtheriskweighttocreditrating)tocontainexcessiveleverage.ButeffectiveApril2025,itrolledthisback,allowingriskrating.DespitetighterregulationsformostofFY25,thesectordemonstratedresilienceandthecreditgrowthmoderatedduetohigherriskweightsonconstrainingtheirlendingcapacity.However,totalcreditgrowthpicke2025,upfrom16%inSeptember2024,ledbywaspartlyduetostructuralchanges,includingtheentities.Attheactivitylevel,NBFC-InfrastructureFinanceInstitutions(NBFC-MFIs)stressintheirmicrofinanceportfolios.placingupwardpressureonborrowingcosts,whichroseto8%.Bankborrowfundingsource(41.7%),followedbydebentures(31.6%).Facingtighterdomesticliincreasinglytappedforeigncurrencyborrowings,Assetqualitysawanimprosector,withthegrossnon-performingasset(GNPA)theoverallsector.Withinsegments,theindustryandservicessectorswhichconstitute38%and20thetotalNBFCloanportfolio,respectivelyalsoreportedbetterassetquality,withGNPAratiosremainedsignificantlyhigherforNBFC-MLsat75.8%,comparedto44.9%forNBFC-ULs,reflectingprudentriskmanagement.resilient,supportedbystrongerplayers,vulnerabilitiespersistparticularlyinretailcreditstress,risingcostoffunds,andfundingconcentrationrisks.Asupportiveregulatoryandliquidityenvironmentwillbecrucialforenablingbroad-basedandsustainablecreditgrowthacrossthelendingportfolioof18selectlargeNBFCs(includingCorporationorPFC)fromMarch2018toMarch2025.Overall,thewholesalebookoftheseselectFY25).ThisgrowthwasprimarilydrivenbyaUS$5.61billion-increase,i.e.,33%incremarkets.Additionally,outofremaining16largeOverall,amorecautiousapimprovementinlendingstandards,andtherestorationofriskweightsonbaarestability-enhancingandcreditpositive.14RBIFSRReportJune202515RBIhasestablishedafour-layered(Base,Middle,Upper,andTop)regulatoryframeworkforNBFCsbasedontheirsize,activity,andpotentialimpactonthefinancialsystem.Thesegenerallyincludelargehousingfinancecompanies,infrastructurefinancecompanies,andinvestment16EYanalysis介14PrivatecreditinIndia:H12025Update介2.3.DebtmutualfundsThetotaldeploymentofmutualfundsincorporatedebt(includingfloatingratebonds,NCDsandothers)increasedfromUS$367billioninFY24toUS$437FY23toFY24.27%to34%,reflectingfuturepotential.Incontrast,thatsentimentstowardthesectorremaincautious.Meanwhile,theallocationto'Others'hasdroppedapproach,withcapitalbeingredirectedtowardsectorslikeNBFCsthatofferbetteropportunities.US$437bUS$367bUS$343b148,34%107,29%91,27%246,71%Source:SEBIwebsiteThecorporatebondmarketremainsavitalalternativetobankfinancing.Outst