₹17.7 Lakh Cr Vs ₹7.6 Lakh Cr: Non-Bank MFDs Race Ahead Of Banks, 6 Points

Mumbai

📊 ₹17.7 Lakh Cr vs ₹7.6 Lakh Cr: How non-bank mutual fund distributors (MFDs) Outpaced Banks in 5 Years

1. Explosive AUM Growth in 5 Years

1. Non-Bank MFDs (National Distributors (NDs), boutique firms & individuals):

   • FY21 AUM: ₹6.47 lakh crore

   • FY25 AUM: ₹17.73 lakh crore

   • Growth: +174%

2. Banks:

   • FY21 AUM: ₹3.73 lakh crore

   • FY25 AUM: ₹7.62 lakh crore

   • Growth: +104%

👉 Non-bank MFDs grew 70% faster than banks.

2. Market Share Shift – Banks Lose Ground

1. FY21 Distribution Share:

   • Banks: 37%

   • Non-Banks: 63%

2. FY25 Distribution Share:

   • Banks: 30%

   • Non-Banks: 70%

👉 Clear dominance of non-bank players in mutual fund distribution.

3. Commission Income Surge

1. Banks:

   • FY21: ₹2,123 crore

   • FY25: ₹5,291 crore

   • Growth: +149%

2. Non-Banks:

   • FY21: ₹4,590 crore

   • FY25: ₹15,816 crore

   • Growth: +245%

👉 Non-banks earned 3x more commissions than banks by FY25.

4. Commission Market Share Shift

1. FY21:

   • Banks: 31.6%

   • Non-Banks: 68.4%

2. FY25:

   • Banks: 25%

   • Non-Banks: 75%

👉 Non-banks now capture ¾th of commission income.

5. Top Distributors – Then & Now

• Top Banks (FY21 & FY25):

  • SBI, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank (Citibank out, HSBC in)

• Top Non-Banks (FY21 & FY25):

  • NJ IndiaInvest – consistent leader

  • Prudent – rose to 2nd spot

  • ICICI Securities – slipped behind Prudent

  • Anand Rathi Wealth – steady position

6. Key Takeaways

• Non-bank distributors are growing faster, earning higher commissions, and taking bigger market share.

• Banks are lagging behind, losing both AUM share and commission share.

• The future of mutual fund distribution is being redefined by NDs and individual MFDs.

📝 Disclaimer – The Profit India

The above article is based on publicly available AMFI data and industry reports. Figures are for informational and analytical purposes only. The Profit India does not provide financial advice or investment recommendations. Readers are encouraged to consult certified financial advisors before making investment decisions.