Archive · 11 Aug 2025
Indian Firms to Raise Record Funds via Corporate Bonds
Companies in India are expected to borrow a lot of money by selling bonds in the next few weeks.
This is because it's become cheaper for them to get money this way, compared to borrowing from banks.
Big companies like hospitals and banks are planning to sell these bonds.
This year, companies have already borrowed a record amount through bonds.
This trend is happening because interest rates have gone down, making bonds more attractive.
It's also easier to get money quickly through bonds than from banks.
The amount of money banks lend to companies has also decreased.
Indian firms are expected to raise at least 300 billion rupees via bonds in the next three weeks.
Issuers like Manipal Hospitals and State Bank of India are expected to tap the market.
Firms raised 4.07 trillion rupees via bonds in April–July, the highest ever for the first four months of a financial year.
Yields on corporate bonds have dropped following the Reserve Bank of India's rate cut.
The incremental share of bank credit in resource mobilisation has fallen.
- Who
- Companies including Manipal Hospitals, State Bank of India, and others.
- What
- Indian firms are set to raise funds through corporate bonds.
- When
- The fundraising is expected to continue in August and the next three weeks.
- Where
- India
- Why
- Due to lower bond yields, ample liquidity, and favorable rate conditions.
- Expected Fundraising
- At least 300 billion rupees in the next three weeks
- Firms Raising Funds
- Manipal Hospitals, State Bank of India, others
- Fundraising in April-July
- 4.07 trillion rupees
- Cause of Bond Yield Drop
- Reserve Bank of India's rate cut
- Bank Credit Share Drop
- From 44.6% to 22% in April–June of FY24