Debt private placement touches record high of Rs7 trillion in FY17: report

Mumbai: Debt private placement touched a record high of Rs7.03 trillion in FY17, according to market research firm Prime Database. Indian companies rushed to raise funds from the bond market as they were turned down by banks which are saddled with rising non-performing assets (NPAs).

On a year-on-year basis, the amount raised by 661 institutions and companies through debt market borrowing showed an increase of 43% over FY16 levels.

The private sector constituted the highest share of borrowing from the debt market, raising close to Rs3.31 trillion in FY17 compared to Rs2.36 trillion in the previous year. With this, the share of the private sector in total debt private placements stood at 47% compared to 23% six years ago.

Financial institutions, including banks, also saw a 42% jump in debt market borrowing to Rs2.8 trillion compared to Rs1.9 trillion in the previous year.

While public sector undertakings (PSUs) saw an increase of 108% to Rs67,176 crore, state financial institutions (SFIs) borrowed close to Rs275 crore in FY17.

State-level undertakings (SLUs), however, saw a drop in their borrowing by 14% to Rs20,489 cror