Monday, March 4, 2024

Fundraising via private bonds hit record high in 2023: Report

Fund mobilisation through private placement bonds hit an all-time high of 9.58 trillion in 2023, reflecting a 26 percent increase from the previous year, shows data released by Prime Database.

The upswing can be attributed to a surge in credit demand propelled by robust economic growth, Pranav Haldea, managing director of Prime Database Group says. Concurrently, the banking system faced liquidity constraints, leading to entities exploring alternative avenues for capital infusion, the release stated.

The highest mobilisation in the year came from All-India Financial Institutions and banks, accounting for 4.71 trillion, marking a 29 percent increase from the previous year’s 3.66 trillion, as per the report.

The private sector (excluding banks/financial institutions) saw a staggering 40 percent surge, mobilising 4.45 trillion compared to 3.18 trillion in the previous year, it added.

Government entities played a key role, collectively mobilising 41 percent of the overall amount, surpassing the 38 percent seen in 2022. 

Among government entities, All-India Financial Institutions/banks led with an 89 percent share, followed by a 9 percent share by public sector undertakings. 

HDFC emerged as the leader in fund mobilisation, raising 74,062 crore, followed closely by Nabard ( 63,164 crore).

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here.
Download The Mint News App to get Daily Market Updates & Live Business News.

More
Less

Published: 16 Jan 2024, 03:59 PM IST

#Fundraising #private #bonds #hit #record #high #Report

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles