Bonds issuances expected to touch new high of Rs 1.2-1.3 trillion

According to ICRA, bond issuances are estimated to reach Rs 1.2-1.3 trillion in 2024-25 compared to the previous high of Rs 1.1 trillion in 2022-23 and 1 trillion in 2023-24. Public sector banks are expected to have a majority share of up to 82-85 per cent and dominated by infrastructure bonds. Banks are resorting to bonds amid lagging deposit growth against credit growth. For 2024-25 total bond issuances stand at Rs 767 billion, registering a YoY growth of 225 per cent and reaching 75 per cent of the total issuances done in 2023-24.