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The banking sector’s investments in AMCs in the last four years have increased to 0.15 per cent of total assets from 0.09 per cent. This indicates that banks have reposed faith in asset management companies.
However, AMCs’ investments in banks have come down during the same period to 24.7 per cent of assets under management (AUM) from 43 per cent. Bank investments in insurance companies have decreased to 0.04 per cent of total assets from 0.06 per cent, while insurer investments in banks remained flat at 12.9 per cent of AUM in FY14 as against 12.7 per cent in FY12.
However, banks have depended more on insurers for raising funds (4 per cent of AUM in FY15 as against 2.8 per cent in FY12) as against AMCs (2.6 per cent of total assets in FY15 compared with 3.3 per cent of FY12).
Bank investments in top 36 NBFCs have remained flat in the last four years whereas AMC investments have seen an exponential rise. Investment in NBFCs by insurers has more than doubled in the last four years.
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