Corporate India raised 40% less money in July
India's corporate sector raised 40% less money in July 2025, collecting ₹56,589 crore versus ₹95,294 crore last year.
The main reason? Public sector banks (PSBs) and government enterprises hit pause on bond sales, expecting interest rates to drop soon and already having plenty of cash on hand.
PSBs paused bond sales
Since April, PSBs haven't issued any new bonds—unlike last July when they brought in ₹26,000 crore this way.
Instead, they turned to equity fundraising through qualified institutional placements (QIP), with State Bank of India alone bagging ₹25,000 crore.
This shift lines up with an upcoming cash reserve ratio cut planned for later this year.
Strategic pause or real trouble?
Private and small finance banks barely raised funds (just ₹1,715 crore between April and July), and many government enterprises stayed out of the bond market too.
But top-rated private companies and big non-banking finance firms kept raising money at fixed rates.
So while July looked slow overall, it seems more like a strategic pause than a real sign of trouble for the market.