Non-bank funds up in cos’ credit history

Mumbai: India Inc is increasingly diversifying funding requirements by tapping non-banking sources such as equity markets and corporate bonds, reducing reliance on traditional bank loans. This trend reflects a structural shift toward market-based financing amid a rate easing cycle. Overall outstanding credit to the commercial sector - combining banks and non-bank sources - stood at ₹290.38 lakh crore this fiscal year till November-end, a 13.2% rise from ₹256.5 lakh crore a year ago. "This indicates that growth momentum has picked up and is likely to sustain with easy financial conditions and substantial liquidity infusion by RBI," said Gaura Sengupta, chief economist at IDFC First Bank.126165782 Of ₹290.38 lakh crore outstanding flow of funds, credit by banks to the commercial sector rose 11.4% year-on-year to ₹194.48 lakh crore, while funding through non-banks surged 17% to ₹95.91 lakh crore, as per RBI data until November 28. The incremental flow of financial resources to the commercial sector, including bank loans, NBFC credit, corporate bonds, stood at ₹22.56 lakh crore as of November 28, a 23% rise from a year earlier. The FY26 year-to-date increase showed banks adding ₹12.4 lakh crore, a 18% increase, while non-bank sources contributed ₹10.1 lakh crore, up 29%.