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

According to ICRA Limited, bond issuances are estimated to reach Rs 1.2 trillion-Rs 1.3 trillion in 2024-25 compared to the previous high of Rs 1.1 trillion in 2022-23 and Rs 1 trillion in 2023-24. Public sector banks are expected to hold a majority share of up to 82-85 per cent, primarily 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 year-on-year growth of 225 per cent and reached 75 per cent of the total issuances in 2023-24.