Bank Credit rises, Bond fundraising dips

Bank lending to India’s commercial sector increased sharply during April-August of the current financial year (FY27), even as corporate bond issuances by non-financial companies declined amid rising bond yields, according to the Finance Ministry’s October Monthly Economic Review.

The report showed that total financial resources flowing to the commercial sector from banks and nonbank sources increased by 55.4 per cent to Rs 17.5 lakh crore during April-August FY27, compared with Rs 11.2 lakh crore in the corresponding period last year. “The primary source of this growth has been nonfood bank credit, amounting to Rs 9.8 lakh crore, up from Rs 3.8 lakh crore a year earlier; corporate bond issuances by non-financial  entities, by contrast, fell to Rs 0.3 lakh crore from Rs 1.5 lakh crore over the same period as bond yields moved up,” the report stated.