Equity, bond issuance form a major source of fundraising for corporates

Non-bank sources now contribute nearly half of commercial-sector funding, led by record corporate bond issuances, steady equity fundraising and rising credit flows from NBFCs

Non-bank sources, especially equity issuances and corporate bond issuances, now nearly equal banks in financing the commercial sector, with the funding gap closing rapidly. Almost 45 per cent of total resources raised by the sector came from non-bank sources from April to October in FY26, with corporate bond issuances surpassing equity issuances. Bonds, equity issuances, and credit by non-banking financial companies (NBFCs) were the largest contributors among non-bank funding channels. Corporate bond issuances until October FY26 exceeded the entire issuance in FY25. That year, non-bank sources accounted for nearly 49 per cent of total resources mobilised by the commercial sector. The rise in non-bank funding was driven by buoyant equity issuances in a strong domestic equity market, robust NBFC credit, and a rebound in short-term external credit.