Corporate bond issuances increased to ₹74,000 crore in December 2025 from ₹59,000 crore in November 2025, according to RBI’s ‘State of the Economy’ report
Total corporate bond issuances in the first nine months of the current financial year (9MFY26) are about 6 per cent lower at ₹6.83 lakh crore, against ₹7.25 lakh crore in the corresponding period of the previous year. This development comes amidst rising corporate bond yields and the shift towards bank credit.
Corporate bond issuances increased to ₹74,000 crore in December 2025 from ₹59,000 crore in November 2025, according to RBI’s ‘State of the Economy’ report.
Corporate bond yields hardened across tenors and the rating spectrum, with their spreads over corresponding maturity government securities generally widening.
For example, in the case of one-year and three-year “AAA”-rated corporate bonds, their spreads over corresponding maturity government securities widened to 181 basis points (bps) during the January 16, 2026 – February 16, 2026 period (from 151 bps during the December 16, 2025 – January 14, 2026 period) and 91 bps (80 bps), respectively.
Bank credit and deposit growth
Scheduled commercial banks’ (SCBs) credit and deposit growth continued to be in double digits during the month, with credit growth outpacing deposit growth, per the bulletin.
SCBs’ credit growth increased marginally to 14.6 per cent year-on-year (y-o-y) as on January 31, 2026, from 14.5 per cent (y-o-y) as on December 31, 2025. SCBs’ deposit growth declined marginally to 12.5 per cent (y-o-y) from 12.7 per cent (y-o-y) during the same period last year.
Overall, non-food bank credit growth (y-o-y) witnessed strengthening across all major sectors in December, 2025.
Agriculture and industrial credit growth surged to double digits. Within industries, lending to micro, small and medium enterprises (MSMEs) as well as large industries witnessed higher growth. Credit to services sector grew, due to a steep rise in bank lending to NBFCs, along with robust growth in sectors like trade and commercial real estate. Housing, gold and vehicle loan segments drove growth of personal loans.
Flow of financial resources
So far in FY26 (up to January 31, 2026), total flow of financial resources to the commercial sector increased to ₹34.5 lakh crore from ₹25.5 lakh crore a year ago. Non-bank sources − corporate bond issuances, and foreign direct investment to India − has shown a marked increase so far.
As on January 31, 2026, the total outstanding credit to the commercial sector rose by 14.7 per cent, with non-bank sources registering a growth of 15.1 per cent.
Published on February 20, 2026
