Fund Mobilisation

Concerned over household savings moving towards alternative investment avenues, RBI Governor Shaktikanta Das on Thursday asked banks to mobilise deposits through innovative products and services by leveraging their vast branch network. "Banks are taking greater recourse to short-term non-retail deposits and other instruments of liability to meet the incremental credit demand. This, as I emphasised elsewhere, may potentially expose the banking system to structural liquidity issues," he said. Observing that alternative investment avenues are becoming more attractive to retail customers, he said, as a result banks are facing challenges on the funding front with deposits trailing loan growth. Banks, he said, need to focus more on mobilisation of household financial savings through innovative products and service offerings and by leveraging fully their vast branch network. Expressing concern over high growth in 'top-up' housing loans, Das said the regulatory prescriptions relating to lo

The highest mobilisation in 2023 came from All-India Financial Institutions and banks, accounting for Rs 4.71 trillion, representing a 29 per cent increase from the previous year's Rs 3.66 trillion

REITs and InvITs have gained popularity as preferred investment options, with fundraising, through the route, surging 10-fold year-on-year to Rs 11,474 crore in 2023, supported by measures taken by regulator Sebi and attractive returns offered by the instruments. Going ahead, fund mobilisation by REITs (real estate investment trusts) and InvITs (infrastructure investment trusts) is poised for significant growth in 2024, driven by several key factors, including anticipation of rate cuts and introduction of a range of policies aimed at encouraging investments like tax incentives and relaxed investment norms, Claravest Technologies co-founder Manaki Parulekar said. "This year, we are likely to see interest rates decrease in the first half of 2024 due to the expected drop in inflation. These conditions are favourable for investors who are looking to invest in long-term opportunities, such as REITs and InvITs," he added. According to data compiled by Prime Database.com, REITs and InvITs

The company operates within the highly competitive express logistics industry which boasts a total addressable market opportunity in excess of Rs 1.5 trillion

Adjusted net income rose 13% from a year earlier to $1.6 billion, or $10.91 a share, beating Wall Street's average estimate of $8.20. Revenue rose 5% to $4.5 billion

Increasing foreign presence in the debt market will release the pressure on our banks and free up money for lending since demand for loans is far higher than deposit mobilisation

Developed by State Bank of India, the portal is part of the revised guidelines that aim at facilitating real-time monitoring, increasing transparency and accountability

Fund mobilisation by companies through equity and debt routes has dropped 20 per cent in 2022 to nearly Rs 11 lakh crore, as exuberance dwindled this year due to expensive credit avenues and volatile markets. The first half of 2023 could continue to remain challenging. The year 2021 was extraordinary for fundraising from the equity and debt routes, while 2022 has seen a slowdown in capital raising owing to elevated volatility provoked by unprecedented inflation globally and the Russia-Ukraine war. "The first half of 2023 could continue to be challenging, largely driven by global macro developments. If the slowdown/recession in the US is mild, then we could see a rally in global markets in the second half of next year, which would aid investor sentiment and the Indian markets as well," said Vishal Chandiramani, Managing Partner Products and COO, TrustPlutus Wealth (India) Pvt Ltd. Even with a bounce back in markets, it will be more difficult to garner funds over the next few years as

The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes