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Updated · Bloomberg · Jun 3India Bank Lending Grows 16.2% as Bond Sales Fall 11% to 10.9 Trillion Rupees
3 articles · Updated · Bloomberg · Jun 3Summary
- 16.2% credit growth in the year through May 15 marked India’s fastest bank-lending expansion since June 2024.
- Cheaper loans are drawing companies away from bond markets, shifting corporate funding demand toward banks.
- 10.9 trillion rupees in local bond sales were raised over the period, down 11% from a year earlier, according to Bloomberg-compiled data.
- The divergence signals a broader financing rotation in India, with banks regaining share of corporate borrowing as bond issuance weakens.
Insights
As Indian firms borrow record amounts locally, why are they investing billions abroad instead of in India? Is the RBI's new acquisition finance rule sparking a boom or setting up India's next big credit crisis?