Debt raising brings respite but financial condition is fragile: Economists

There has been a spurt in bond and commercial paper issuances by private entities, especially non-banking financial companies (NBFC), and they are doing this at a cheaper rate than the pre-Covid levels.

At the same time, taking advantage of low rates overseas and relatively relaxed norms by the Reserve Bank of India (RBI), Indian companies are lining up to raise resources abroad.

While some suggest that this could indicate financial stability taking hold in the system, others are not so optimistic even though they agree that there has been some respite concerning the NBFC sector.

In his Ecowrap report, State Bank of India