Stories
Banks and Financial Firms Drive 60% of India Bond Sales
- •Financial services and banking firms accounted for 60% of all long-term corporate bond issuances in India since January 2025, according to PRIME Database data.
- •Lagging deposit growth and outpacing credit growth are prompting banks to rely heavily on market borrowings.
- •Auto, textile, and IT firms raised about 1% combined, highlighting a structural skew where financial institutions continuously need debt to fund their loan books.
- •Top five industries including financial services, banking, housing, power, and housing finance accounted for over 81% of the total ₹19.41 lakh crore raised.
Key Questions Answered
Banks and financial services firms accounted for 60% of all long-term corporate bond issuance in India since January 2025, raising massive amounts to fund their ongoing lending books.
Financial institutions, banks, and housing finance companies borrow continuously because they have a structural requirement to fund their loan books. In contrast, large IT and automobile companies are cash-generative with recurring borrowing needs tied mostly to working capital or capex rather than continuous long-term debt.
Under SEBI's large corporate framework, eligible large corporations are required to raise at least 25% of their incremental borrowings through debt securities. This specific rule was designed to help widen the issuer base beyond financial institutions.
