Mumbai: Indian companies have sold bonds worth 64,250 crore to 86 institutions and corporations in the three months ended June, a rise of 29% from 49,859 crore mobilized in the year-ago quarter, according to Prime Database, the New Delhi-based primary market tracker.

Investors have become averse to risk and have little appetite for initial public offerings, forcing firms to postpone plans to raise money through this route. Photo: Mint

Investors have become averse to risk and have little appetite for initial public offerings, forcing firms to postpone plans to raise money through this route.

Financial institutions and banks saw a 7% decrease in mobilization compared with the June quarter of 2011.

“Banks are lending less due to increase in due diligence towards them against the backdrop of raising NPAs (non-performing assets)," said Prithvi Haldea, chairman and managing director of Prime Database. “This has led to decrease in mobilization of funds by banks."

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