Govt raises 1.10 lakh crore in covid-hit FY21 towards 77,052 crore in FY20: Fundraising through public, rights points up 42%

Despite the uncertainty as a result of Covid-19 pandemic, fundraising by means of public fairness and debt markets surged in 2020-21, the Finance Ministry stated in an announcement Wednesday. Funds raised by corporations by means of public and rights points surged 115 per cent and 15 per cent, respectively, in FY21. Total funds raised by means of public and rights subject rose almost 42 per cent to Rs 1.10 lakh crore in 2020-21 from Rs 77,052 crore in 2019-20.
“During 2020-21, Rs 46,029.71 crore and Rs 64,058.61 crore were raised through Public Issues and Rights Issue, respectively, as against Rs 21,382.35 crore and Rs 55,669.79 crore raised last year. This is an increase of 115 per cent and 15 per cent, respectively, in 2020-21 as compared to last year,” the Ministry stated.
Similarly, round 2,003 problems with company bonds have been issued for an quantity of Rs 7.82 lakh crore 2020-21, as in contrast Rs 6.89 lakh crore by means of 1,821 points for fiscal 2019-20, it famous. A report quantity of liquidity infusion by world central banks in addition to the Reserve Bank of India helped blue chip corporations elevate funds from public markets, regardless of uncertainties surrounding the economic system.
“Indian capital market has shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic. Assets under management (AUM) of mutual fund industry increased by 41% from Rs 22.26 lakh crore as on March 31, 2020 to Rs 31.43 lakh crore as on March 31, 2021. The number of unique investors across mutual fund schemes also increased by 10% from 2.08 crore as on March 31, 2020 to 2.28 crore as on March 31, 2021,” the federal government stated.

With the growing enlargement of the mutual fund business in smaller cities, the AUM from beneath the highest 30 cities elevated by 54 per cent from Rs 3.48 lakh crore as of March 31, 2020, to Rs 5.35 lakh crore as of March 31, 2021, the ministry stated.

Bank deposits have additionally been rising at the same time as credit score progress has not stored tempo with the enlargement in deposits. Despite over a 100-basis level decline in rates of interest, financial institution deposits surged by 11.4 per cent throughout the monetary 12 months ended March 2021, as towards 7.9 per cent within the earlier 12 months. However, credit score progress declined to five.6 per cent in FY21 from 6.1 per cent within the earlier 12 months, in keeping with RBI information.