Archive · 24 Jul 2025
NBFC Perpetual Bond Fundraising Surges Amid Market Shifts
Imagine companies called NBFCs, which aren't banks, needing money.
They're selling special bonds called perpetual bonds that never have to be paid back.
Investors are liking these because they pay good interest and stocks are risky right now.
NBFCs raised a lot more money this way recently.
These bonds are seen as safer than some bonds banks use, which makes investors happy.
Unlike banks, NBFCs are using these bonds, while banks are selling their stocks to raise money.
NBFCs' fundraising via perpetual bonds surged 69% to ₹16,185 crore in FY25.
Perpetual bonds have no maturity date and pay interest indefinitely.
Investors are attracted to perpetual bonds due to equity market volatility and lower deposit rates.
NBFCs' perpetual bonds are often perceived as less vulnerable than banks' AT1 bonds.
NBFCs are increasingly using perpetual bonds, while banks favor equity through QIPs.
- Who
- NBFCs and investors.
- What
- NBFCs' fundraising through perpetual bonds increased.
- When
- Fundraising increased in FY25 and the trend is continuing into FY26.
- Where
- India.
- Why
- Investors seek attractive returns amidst market volatility.
Investor Perspective
NBFC & Market Trends
Risk vs. Reward
Investor Perspective
Investors are attracted by potentially higher returns than bank deposits or government bonds.
NBFC & Market Trends
Investors should understand risks, particularly the credit quality of the issuing NBFCs.
- FY25 Fundraising
- ₹16,185 crore
- FY24 Fundraising
- ₹9,549 crore
- Percentage Increase
- 69%
- Bond Type
- Perpetual
- Number of Issuances (FY25)
- 70