Private debt placement by India Inc hits a high in FY23
debt by India Inc hit a record high in the last financial year as a recovery in economic growth and surging interest rates abroad prompted companies to flock to the local market to raise capital.
Resource mobilisation in the private placement market was at ₹8.83 lakh crore in FY23, the highest on record, provisional data in the Reserve Bank of India's latest Handbook of Statistics on Indian Economy showed. In 2021-22, funds raised through private placement were at ₹6.32 lakh crore, the data showed.
The figures are compiled based on data received by the RBI from merchant bankers, financial institutions, and stock exchanges.
In the current financial year, the private sector, comprising financial institutions and non-financial institutions, clocked up 1,398 issuances worth a total of ₹4.69 lakh crore. Meanwhile, public sector financial institutions and non-financial institutions carried out 256 issuances worth a total of ₹4.14 lakh crore, the data showed.
«The domestic market has been conducive for corporates to borrow.
One of the reasons was the higher refinancing demand because of tighter liquidity conditions in the banking system. The refinancing demand from all-India financial institutions like SIDBI, NABARD and NHB went up,» said Anil Gupta, senior vice president & co-group head at rating agency ICRA.
Moreover, banks stepped up debt issuances last year to finance booming credit growth amid a far slower pace of deposit growth.
