Corporate fundraising shrinks in FY17 as capacities sit idle

Banks' incremental credit-deposit ratio at 22% in FY17; tepid numbers in bonds, ECBs and equities

Low demand for funds from eligible borrowers and bankers tightening purse strings over bad debts have led to the Indian corporate sector’s borrowing shrinking in 2016-17. Fundraising from equity markets, too, has been lower in FY17 over previous year. 

Even as bank deposits grew 13 per cent year-on-year (YoY) or over Rs 12 lakh crore to Rs 105 lakh crore in 2016-17 till March 3, bank credit grew only 3.7 per cent or Rs 2.66 lakh crore to Rs 75 lakh crore, according to data published by the Reserve Bank of India (RBI). While the overall credit-deposit ratio stood at