Shadow bank bond sales rebound as lenders raise Rs 81,300 cr since April

More cash for shadow banks is good news for the Indian economy, which relies on these firms to provide financing to everyone from tailors to business giants

Indian shadow lenders are selling the most local-currency bonds since before a financial crisis engulfed the sector two years ago, in a sign that record stimulus is easing their fundraising burden.

The financiers have raised Rs 81,300 crore ($10.9 billion) through rupee notes since April 1, making it the best start to a financial year since 2017. Offerings from non-bank firms had declined in 2018 and 2019 as at least three shadow lenders defaulted on their repayments, battering investor demand for the sector’s debt.

More cash for shadow banks is good news for the Indian economy, which relies on these firms to