India Inc mobilises Rs 92355 cr, PSUs record major fall

Mumbai, June 11 (UNI) As India continues its growth trajectory at more than 9 per cent and manages to tame inflation at less than 5 per cent for the first time in 10 months, a latest study discloses that India Inc has mobilised a staggering Rs 92,355 crore through issue of corporate bonds in the financial year 2006-07, notwithstanding a major fall in the funds raised by government-run companies during the same period.

Research conducted by Prime Database reveals that the total funds mobilised through issue of corporate bonds on private placement basis in the financial year 2007, increased by 13 per cent to Rs 92,355 crore as compared to Rs 81,847 crore during the previous fiscal, in view of the ''continuing large mobilisation by all-India financial institutions and banks, whose raising went up by 13 per cent from Rs 61,614 crore to Rs 69,693 crore.'' However, the study laments that a major fall in mobilisation came from Public Sector Units (PSU), which declined by 43 per cent to Rs 6,178 crore from Rs 10,796 crore in the previous year, besides, the state level undertakings which also recorded a fall of 15 per cent, from Rs 889 crore to Rs 752 crore.

While the private sector witnessed a significant growth as the mobilisation through corporate bonds on private placement basis, went up by 83 per cent from Rs 7,944 crore to Rs 14,540 crore, government organisations and financial institutions, put together, witnessed a decrease as it mobilised 84 per cent of the total amount, down from 90 per cent in the previous year, the research pointed out.

Among government organisations, all-India financial institutions and banks led with a 75 per cent share, followed by a seven per cent share by PSUs, one per cent each by State Financial Institutions and State Level Undertakings, the study disclosed.

UNI