Business • Jul 02, 2025

Indian corporates increasingly opt for capital market funding

Indian companies raised a massive ₹15.7 lakh crore through capital markets in FY25, up nearly 33% from last year, according to RBI data.
This signals a clear shift away from traditional bank lending as businesses look for smarter, more cost-effective ways to get funding.

TL;DR

Corporate bonds hit an all-time high

Most of this money—about 64%—came from debt instruments, with almost all of it raised privately rather than on public exchanges.
Corporate bonds hit an all-time high, thanks to ₹9.9 lakh crore in new bond issues.
Big-name AAA-rated firms were behind most of these bonds (67%), even though actual trading activity stayed flat.
The gap between borrowing costs also grew as market uncertainty lingered.