Private placement of debt drops to Rs 6.5 trillion in FY18

The increasing reliance on private placement of debt seems to have reversed course.

Private placements raised Rs 6.55 trillion in 2017-18 (FY18), or half a trillion lower than it raised the previous year, show numbers from market-tracker Prime Database. This breaks a three-year trend which had seen the value of private placements more than double since FY14. Fewer issuers coming to the market, and rising interest rates are said to have contributed to the slowdown.

Private placements’ share as a percentage of bank credit to industry and services is at 13.79% for 2017-18, shows a comparison with