Indian corporates are increasingly tapping capital markets for cheaper and faster access to funds, which led to a 32.9% surge in resource mobilisation, data released by the Reserve Bank of India ( RBI) showed.
Funds raised through capital markets rose to Rs 15.7 lakh crore at the end of March 2025, compared to Rs 11.8 lakh crore a year earlier. Debt dominated the fund-raising mix with a 63.5% share, almost entirely through private placements, which accounted for 99.2%, while equity contributed 27.4%.
Meanwhile, bank lending to industry slowed to just 6.9% in FY25, indicating how Indian corporates are steadily diversifying their funding sources, moving beyond traditional bank loans to tap into capital markets, particularly the corporate bond market and equity issuance.
In the debt market, corporate bond net outstanding increased to Rs 53.6 lakh crore at the end of March 2025, supported by the highest-ever fresh issuance of Rs 9.9 lakh crore during 2024-25.
“Secondary market remained lacklustre with average monthly turnover at 3.8% of outstanding value,” the central bank noted. “Listed private placements overwhelmingly remained the preferred route for resource mobilisation, while public issuances formed only a small fraction of total issuances.”
Raising funds through capital markets, especially via private placements of corporate bonds offers more competitive pricing and quicker access compared to the often lengthy and collateral-heavy bank loan process, experts say.
In 2024-25, AAA-rated firms dominated issuances with a 67.1% share, while issuers rated below AA accounted for 16% of total issuances.
Corporate bond spreads widened marginally due to tighter liquidity conditions, trade-related uncertainty, and softer growth prospects. Median spreads across rating categories were higher by 20–30 basis points, even though yields softened.
Median spreads for AAA-rated firms stood at around 27 basis points, AA-rated firms at 32 basis points, and below AA at 22 basis points.
“From a financial stability perspective, a deep and liquid corporate debt market is important as it provides an alternative to bank finance, widens investor base and improves overall resilience of the financial system,” the RBI noted in the financial stability report.
Funds raised through capital markets rose to Rs 15.7 lakh crore at the end of March 2025, compared to Rs 11.8 lakh crore a year earlier. Debt dominated the fund-raising mix with a 63.5% share, almost entirely through private placements, which accounted for 99.2%, while equity contributed 27.4%.
Meanwhile, bank lending to industry slowed to just 6.9% in FY25, indicating how Indian corporates are steadily diversifying their funding sources, moving beyond traditional bank loans to tap into capital markets, particularly the corporate bond market and equity issuance.
In the debt market, corporate bond net outstanding increased to Rs 53.6 lakh crore at the end of March 2025, supported by the highest-ever fresh issuance of Rs 9.9 lakh crore during 2024-25.
“Secondary market remained lacklustre with average monthly turnover at 3.8% of outstanding value,” the central bank noted. “Listed private placements overwhelmingly remained the preferred route for resource mobilisation, while public issuances formed only a small fraction of total issuances.”
Raising funds through capital markets, especially via private placements of corporate bonds offers more competitive pricing and quicker access compared to the often lengthy and collateral-heavy bank loan process, experts say.
In 2024-25, AAA-rated firms dominated issuances with a 67.1% share, while issuers rated below AA accounted for 16% of total issuances.
Corporate bond spreads widened marginally due to tighter liquidity conditions, trade-related uncertainty, and softer growth prospects. Median spreads across rating categories were higher by 20–30 basis points, even though yields softened.
Median spreads for AAA-rated firms stood at around 27 basis points, AA-rated firms at 32 basis points, and below AA at 22 basis points.
“From a financial stability perspective, a deep and liquid corporate debt market is important as it provides an alternative to bank finance, widens investor base and improves overall resilience of the financial system,” the RBI noted in the financial stability report.
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