New Delhi, Jan. 25 -- India is seeing a surge in private credit, and its flexibility compared to traditional bank loans is fuelling higher risk appetite in the country's deals environment, according to a top executive at a global investment bank.

"India's private credit market is booming," Manisha Girotra, chief executive of Moelis India, told Mint.

Since private credit is more flexible on the cap table, it can be structured to reflect individual risk appetites, she said.

"Banks, especially global ones, are competing very hard to fund mergers and acquisitions, but you will see more private credit come into the picture," Girotra added.

To be sure, compared with the rest of the world, India's private credit market is very small. Accordi...