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Corporate bond issuances on the upswing, reach Rs 5.45 trillion till August

While liquidity played a role, banks' reluctance to lend due to risk aversion and tightened group borrower exposure limits are pushing firms to the corporate bond market space, say experts

Illustration: Ajay Mohanty
Illustration: Ajay Mohanty

Contrary to expectations, the corporate bond market is witnessing a spurt of issuances, and in the first eight months of this calendar year, the issuances have been the highest ever.   While liquidity played a role, banks’ reluctance to lend due to risk aversion and tightened group borrower exposure limits are pushing firms to the corporate bond market space, say experts.   The banking system is awash with liquidity, having generated a surplus of more than Rs 1 trillion for quite some time now. Bond yields also have fallen as the Reserve Bank of India (RBI) has slashed the ...