India firms raised Rs 64,250 cr via debt

This debt amount was mobilised by 86 Indian institutions and companies,according to a report by Prime Database which claims to operate the only database on debt private placements in the country,according to the agency chairman and managing director Prithvi Haldea.

The highest mobilisation was by PFC (Rs 8,398 crore),followed by HDFC (Rs 4,790 crore),Hindalco (Rs 4,500 crore) and Nabard (Rs 4,379 crore),he said adding his agency tracks only those deals,which have a tenor and put/call option of over a year.

According to the data released by Prime Database here today,on an industry-wise basis,the financial services sector continued to dominate the private debt market,collectively raising Rs 41,816 crore or 65 per cent of the total amount,followed by the power sector with a 9 per cent share at Rs 5,474 crore.

Against this,according to banks,during the period,non-food credit grew a poor 19.5 per cent,down from 23.8 per cent a year ago. Had it not been for a good 400 basis points increase farm credit,to 16.8 percent from 12.8 per cent a year go,growth would have even lower.

During Q1,the bank credit to the oil sector nearly doubled to 25.2 per cent,up from 14.2 per cent,taking the overall credit flow to the industrial sector up by 20.3 per cent,show banking data.

As per the Prime report,the biggest mop-up was again carried out by financial institutions/banks which together raised Rs 32,980 crore,a tad over 50 per cent of the entire mop-up. But this was down from the comparable period last year when it stood at Rs 35,299 crore,representing a decline of 7 per cent,says Haldea.

However,the maximum growth in terms of percentage was seen by the state-level financial institutions,which together mobilised Rs 496 crore compared to a poor Rs 3 crore in the corresponding period previous year,he said.

Haldea said but the decline in mobilisation by financial institutions was more than compensated by the private sector,which soared 135 per cent to Rs 22,156 crore against Rs 9,417 crore in the same period last year. This is understandable given the elevated interest rates.

Similarly,there was also a spike in fund-raising by PSUs,which touched Rs 7,323 crore,a near double from Rs 4,469 crore in the same period last year.

Government organisations and financial institutions,put together mobilised 66 percent of the total amount,down from 81 percent in the year ago period.

As per the Prime data,among government organisations,national level financial institutions/banks led with a 51 percent share,followed by an 11 percent share by PSUs,2 percent share each by state-level undertaking and 1 percent by state-level financial institutions.

According to Haldea,in FY02,India Inc raised Rs 45,427 crore private placement,which moved up to Rs 48,424 crore in FY03,an remained flattish in FY04 at Rs 48,428 crore,Rs 55,409 crore in FY05,Rs 81,847 crore in FY06,and to Rs 93,855 crore in FY07.

For the first time,debt raising through private placement crossed the Rs 1 trillion mark at 1,15,423 crore in FY08,which rose to Rs 1,74,327 crore in the next fiscal. In FY10,this touched Rs 1,89,490 crore,which rose to Rs 1,92,225 crore in FY11 and it crossed the Rs 2 trillion mark last fiscal at Rs 22,51,437 crore,Haldea said.

Going by the huge uptick in the first quarter,this is likely to set new record this year. Funds raised by state level undertakings too went up to Rs 1,295 crore up from Rs 671 crore.