Banks Set For Rs 1.3-Trn Bond Issues

Mumbai: The slower deposit growth will push banks to mop-up up to Rs1.3 lakh crore from bond issuances in FY25, a report said on Tuesday. The bond issuances, coming amidst a continuing wedge between deposit and credit growth, will come between Rs1.2-1.3 lakh crore and will be the highest ever for the system, the report said.

Nearly 85 per cent of the bond issuances will be by public sector banks, the report by domestic rating agency Icra said, adding that the higher appetite for infra bonds among such lenders will drive the market.