Resource mobilisation through debt or bonds on private placement basis by institutions and corporate has witnessed a dip of around 8% during the first six months of financial year (FY) 2007-08.
During the period, around 59 institutions and corporates raised debt resources on private placement basis and garnered Rs 48,164 crore. This is a decline of 8% compared to Rs 52,220 crore mobilised in the corresponding period during FY07.
Sandeep Bagla, CIO, fixed income, AIG Investments said, ?Credit off-take is slowing down a bit, which means that institutions are issuing lesser bonds to investors. This has resulted in the dip in mobilisation through issue of debt instruments on private placement basis. This trend is being noticed in the retail segment a bit as well.?
According to data collated by Prime Database, of the total debt raised through private placement basis, such debt raised by all-India financial institutions and banks recorded a decrease of 10% to Rs 36,371 crore as compared to Rs 40,283 crore in the corresponding period of 2006-07. The sector which witnessed a significant growth was the private sector, whose mobilisation went up by 78% to Rs 11,470 crore from Rs 6,428 crore.
Prithiv Haldea, MD, Prime Database said, ?A major fall in mobilisation came from public sector undertakings (PSUs) which was down by 98% to Rs100 crore during the first six months of FY 07-08 as compared to Rs 4,068 crore in the corresponding period of FY 06-07.?
He further said that state financial institutions recorded a fall of 94%, down from Rs 1,140 crore to Rs 73 crore this year. ?Even state level undertakings also recorded a fall of 50% to Rs 150 crore, down from Rs 300 crore in FY 06-07,? he said.
The highest mobilisation through debt private placements during this period was by National Agriculture Bank and Rural Development (Nabard) of Rs 7,788 crore, followed by State Bank of India (SBI) of Rs 6,023 crore, HDFC of Rs 3,950, and Power Finance Corporation (PFC) of Rs 3,182 crore.
