Banks approve bonds, CPs worth over Rs 14,000 crore issued by NBFCs

About 46 per cent of this sum for purchase by public sector banks is for bonds or CPs rated below 'AA'

State-owned banks have given the green signal to buy bonds and commercial papers (CPs) worth Rs 14,667 crore from non-banking financial companies (NBFCs) under the revamped partial credit guarantee scheme.

About 46 per cent of the total Rs 14,667 crore approved for purchase by public sector banks (PSBs) from 67 NBFCs till July 10, that is a sum of Rs 6,845 crore, is for bonds or CPs rated below ‘AA’. A finance ministry statement said on Wednesday that this meant that the scheme has helped in providing liquidity support to NBFCs with lower-rated bonds.

Most of the assistance was given