RBI said during this period, corporate bond issuance also surged, reaching ₹9.87 lakh crore in FY25 as compared to ₹8.38 lakh crore in FY24. The yield on these instruments remained broadly in the range of 6.5-15% across maturities and ratings on the BSE and NSE electronic bidding platform.
Further, RBI data showed that investment by these select entities in equity instruments or shares fell by 62.25 per cent year-on-year to ₹59,945 crore in FY25, from ₹1.59 lakh crore in FY24. Similarly, investment in mutual funds fell to ₹3,656 crore in FY25, as compared to ₹6,700 crore in FY24.
During FY25, the share of external sources of funds in total funds increased to 53.6% from 52.3% in the previous year, largely due to current liabilities. Operating profit and profit after tax continued to show double-digit growth in FY25 on top of high growth in the preceding year. Net profit margin and return on equity (profit after tax to net worth) improved during FY25 mainly due to the services sector.
The trend is visible at the global level, as the latest global financial stability report highlighted a similar trend across emerging markets. The report said that emerging markets are increasingly skewed towards financing through debt as compared to last year. The share of financing through FDI and equities has fallen significantly, highlighting the demand and supply scenario in the corporate credit market.
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