Non-banking enterprises turn to debt market for funds

Equity issuances during 2020-21 amounted to Rs.1.7 lakh cr, 23.7 per cent higher than their year-ago level of Rs1.4 lakh cr.

Bulk of the funds mobilisation through primary capital market in 2020-21 happened through debt instruments. Issuances of debentures peaked at Rs 8.6 lakh cr during the year.

Large companies reduced their exposure to scheduled commercial bank (SCB) credit by Rs 19,600 cr during 2020-21, as per the data released by the Reserve Bank of India (RBI). 

Enterprises cut their exposure to external commercial borrowings (ECBs) in 2020-21, according to the data released by the RBI. They mobilised Rs 2.6 lakh cr through ECBs in 2020-21, which was 30.2 per cent lower than preceding year.

Net foreign direct investment (FDI) inflows to India increased by 4.7 per cent to Rs. 3.2 lakh cr in 2020-21 from Rs 3 lakh cr in 2019-20.

Shivani Sharma, Pragati Srivastava