NBFCs Doubled Bond Sales Shows Investors’ Confidence

Bond sales by non-bank lenders have nearly doubled in the first quarter of FY21, indicating evident revival of investor confidence in suppliers of crucial credit to last-mile users despite the protracted lockdown. These financiers together raised Rs 89,433 crore, compared with Rs 49,625 crore garnered last year in the June quarter, data compiled by JM Financial showed. The tally may rise further as the quarter is yet to end. Double-A rated companies, considered less resilient than those with a higher rating, raised Rs 8,508 crore – more than four times of FY20. “The dynamics of NBFC investment have changed. Although there would be some asset quality pressure, the risk appetite has improved due to easier liquidity. We are now watching the impact of the overall economic conditions on last-mile lenders.” said Rajeev Radhakrishnan, Head- Fixed Income, SBI Mutual Fund. Sundaram Finance, HDB Financial, L&T Finance, HDFC Ltd, Aditya Birla Finance, ECL Finance, JM Financial, Indostar Cap, IIFL Finance, Shriram Transport Finance, and Magma Finance are some of the issuers raising funds during the current quarter.